From the production possibility of both the nations we can see that;
Qw/Qs for France = 1:2
Qw/Qs for Germany = 1:4
Thus France has a comarative advantage in wine production and Germany has comparative advantage in schnitzel production
Now considering situation before trade between both conuntries started;
France producing: 1 bottle wine and 6 pounds of schnitzel
Germany producing : 3 bottle wine and 8 pounds of schnitzel
After both nation produce as per their comparative advantage:
France produce 12 Bottle of wine
Germany produce 28 pounds of schnitzel
Suppose that France and Gernany both produce wine and schrel The tabk belaw shows combinations of...
Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Schnitzel (Kilograms) Wine (Bottles) Schnitzel (Kilograms) 0 12 0 25 1 9 1 20 2 6 2 15 3 3 3 10 4 0 4 5 5 0 Suppose that France is currently producing 1 bottle of wine and 9 kilograms of schnitzel and Germany is currently producing 3 bottles...
Suppose that France and Germany both produce schnitzel and wine. The following table shows combination of the goods that each country can produce in a day 2. France Germany Wine Schnitzel Wine Schnitzel bottles)(pounds) (bottles)(pounds) 15 12 Who has comparative advantage in producing wine? Who has the comparative advantage in producing schnitzel? Explain Suppose France is currently producing 1 bottle of wine and 6 pounds of schnitzel, and Germany is currently producing 3 bottles of wine and 6 pounds of...
Q.4 (18 points) Suppose that Germany and France both produce cheese and wine. The amount of production of the two countries are shown in the following table. Assume that the opportunity cost is constant. Daily production Produce cheese only (pounds) Produce wine only (bottles) Germany 300 1.50 France 150 100 (a) Draw the PPF for Germany. Put cheese on the vertical axis, and wine on the horizontal axis. Indicate the values of both intercepts. (b) Which country has the absolute...
just need e and f Q.4 (18 points) Suppose that Germany and France both produce cheese and wine. The amount of production of the two countries are shown in the following table. Assume that the opportunity cost is constant. Germany France Daily production Produce cheese only (pounds) Produce wine only (bottles) 300 150 150 100 (a) Draw the PPF for Germany. Put cheese on the vertical axis, and wine on the horizontal axis. Indicate the values of both intercepts. (b)...
please answer F too :) Q.4 (18 points) Suppose that Germany and France both produce cheese and wine. The amount of production of the two countries are shown in the following table. Assume that the opportunity cost is constant. Daily production Produce cheese only (pounds) Produce wine only (bottles) Germany 300 1.50 France 150 100 (a) Draw the PPF for Germany. Put cheese on the vertical axis, and wine on the horizontal axis. Indicate the values of both intercepts. (b)...
France and Germany each produce both wine and beer. Their production possibilities are: France - 200 bottles of wine or 400 bottles of beer, and Germany 500 bottles of wine or 400 bottles of beer. A. Which country has an absolute advantage in wine production? B. Which country has an absolute advantage in beer production? C. Which country has a comparative advantage in wine production? D. Which country has a comparative advantage in beer production? E. Propose a trade agreement...
Suppose that Greece and Germany both produce rye and wine. Greece's opportunity cost of producing a bottle of wine is 4 bushels of rye while Germany's opportunity cost of producing a bottle of wine is 10 bushels of rye By comparing the opportunity cost of producing wine in the two countries, you can tell that Germany production of wine and_Greece has a comparative advantage in the production of rye. has a comparative advantage in the Suppose that Greece and Germany...
5. Terms of trade Suppose that France and Denmark both produce oil and wine. France's opportunity cost of producing a bottle of wine is 5 barrels of oil while Denmark's opportunity cost of producing a bottle of wine is 10 barrels of oil. 1.By comparing the opportunity cost of producing wine in the two countries, you can tell that ( Denmark, France) has a comparative advantage in the production of wine and ( France, Denmark) has a comparative advantage in...
Suppose that Greece and Germany both produce rye and wine. Greece's opportunity cost of producing a bottle of wine is 4 bushels of rye while Germany's opportunity cost of producing a bottle of wine is 10 bushels of rye. By comparing the opportunity cost of producing wine in the two countries, you can tell that production of wine and has a comparative advantage in the has a comparative advantage in the production of rye Suppose that Greece and Germany consider...
. In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France in car production relative to ship production" is equivalent to (a) France having a comparative advantage over Germany in ship production. (b) France having a comparative disadvantage compared to Germany in car pro- duction and ship production (c) Germany having a comparative advantage over France in car production and ship production d) France having no comparative advantage over Germany e) France should produce cars....