Without Trade, the price of a pair of white socks (in terms of red socks) in Boston is 3/6 =1/2 of red socks , And in Chicago it is 5/4 of red socks.
Chicago has an absolute advantage in the production of red socks because it produces more red socks and Boston has an absolute advantage in the production of white socks because it produces more white socks .
Chicago has a comparative advantage in the production of red socks because it has a lower opportunity cost for the production of red socks i.e 4/5 of white socks And Boston has a comparative advantage in the production of white socks because it has a lower opportunity cost for the production of white socks i.e 1/2 of red socks.
If the cities trade with each other , Boston will export white socks because it has a comparative advantage in the production of white socks And , Chicago will export red socks because it has a comparative advantage in the production of red socks.
The price of white socks can be expressed in terms of red socks The highest price at which white socks can be traded that would make both cities better off is 5/4 of red socks per pair of white socks and the lowest price that makes both cities better off is 1/2 of red socks per pair of white socks.
Attempts: Do No Harm: /5 6. Problems and Applications Q6 The following table describes the production...
6. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 5 2 Chicago 4 3 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is of red socks, and in Chicago it is of red socks. has an absolute advantage in the production of red...
Attempts Average: IS Problems and Applications 26 The following table describes the production possibilities of two aties In the country of Baseballia: Pairs of Red socks per Worker per Hour Pairs of white Socks per Worker per Hour Boston Chicago without trade, the price of a pair of white socks (in terms of red socks) in Boston Is ▼ of red socks, and in Chicago it s of red socks has an absolute advantage in the production of red socks,...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour 2 Boston Chicago 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago 5 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is, is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 3 6 Chicago 5 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is (1/2 pair, 2 pairs, 4/5 pair, 1 1/4 pairs) of red socks, and in Chicago it is (1/2 pair, 2 pairs, 4/5 pair, 1 1/4 pairs)...
can you please check my answers and correct if nessacery 4. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 2 Chicago 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is 1 1/3 pairs ▼ of red socks, and in Chicago it is...
The following table describes the production possibilities of two cities in the country of Baseballa: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago Without trade, the price of a pair of white socks (in terms of red socks) in Boston of red socks of red socks, and in Chicago it is has an absolute advantage in the production of red socks, and has an absolute advantage in the production of...
12. Probiems and Applications Q6 The table the Boston Chicago Without trade, the price of a pair of white socks (in terms of red socks) in Boston is red socks. of red socks, and in Chicago it is ▼of has an absolute advantage in the production of red socks, and has an absolute advantage in the production of white socks. has a comparative advantage in the production of red socks, and Y has a comparative advantage in the production of...
The following table describes the production possibilities of twocities in the country of Baseballia: Pairs of RedSocks Pairs of White Socks per Worker perHour per Worker per Hour Boston 3 3 Chicago 2 1 a. Without trade, what is the price of white socks (in terms of redsocks) in Boston? And, what is the price in Chicago? b.which city has an absolute advantage in the production of each color sock? Which city has a comparative advantage in the production of...
5. Problems and Applications Q5England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 40 scones per hour or 1 sweater per hour.Suppose that a Scottish worker can produce 20 scones per hour or 2 sweaters per hour._______ workers have an absolute advantage in producing scones, and _______ workers have an absolute advantage in producing sweaters._______ workers have a comparative advantage in producing scones, and _______ workers have a comparative advantage in producing sweaters.If England and Scotland decide...