Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets.
|
Labor hours per keg of coffee |
Labor hours per kilogram of bananas |
|
|
Peruvia |
12 |
15 |
|
Zululand |
6 |
5 |
Absolute advantage in bananas means that given labour input, a country can produce more of the same in comparison to the other country.
Therefore, Zululand has an absolute advantage in production of bananas. (minimum labour hours needed)
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output...
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Which nation has a comparative advantage in banana production? Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output...
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Which nation has an absolute advantage in coffee production?
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Which nation has a comparative advantage in coffee production?
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Zululand’s opportunity cost to produce an additional keg of coffee is _________ kilos of bananas.
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Peruvia’s opportunity cost to produce an additional keg of coffee is _________ kilos of bananas.
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Zululand’s opportunity cost to produce an additional kilo of bananas is _________kegs of coffee.
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Peruvia’s opportunity cost to produce an additional kilo of bananas is _________ kegs of coffee.
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Persia 20 12 Carthage 8 6 Which nation has an absolute advantage in coffee production? Which nation has an absolute advantage in bananas production? Persia’s opportunity cost to produce an additional keg of coffee is _________...
Assume: 1) only two commodities are produced; 2) there are constant ratios of input to output whatever the level of output of coffee and bananas; and 3) competition prevails in all markets. Labor hours per keg of coffee Labor hours per kilogram of bananas Persia 20 12 Carthage 8 6 Describe the adjustment process in Persia as international trade begins: What happens to the domestic price of coffee? What happens to the quantity of coffee purchased? What happens to the...
Labor hours per keg of coffee Labor hours per kilogram of bananas Peruvia 12 15 Zululand 6 5 Describe the adjustment process in Peruvia as international trade begins: What happens to the domestic price of coffee? What happens to the quantity of coffee purchased? What happens to the quantity of coffee produced? Does Peruvia export or import coffee? What happens to the domestic price of bananas? What happens to the quantity of bananas purchased? What happens to the quantity of...