Jeans (million of pairs) | Corn(million of bushels) | |
---|---|---|
Contente | 6 | 36 |
Felicidad | 12 | 16 |
Now calculate the opportunity cost per hour
Contente
6 pairs of jeans = 12 bushels of Corn
1 Pair of Jeans = 2 Bushel of Corn
1 Bushel of Corn = 0.5 Pair of Jeans
Felicidad
4 pair of Jeans = 16 bushel of Corn
1 pair of Jeans = 4 Bushel of Corn
1 Bushel of Corn = 0.25 Pair of Jeans
1 Pair of Jeans | 1 Bushel of Corn | |
---|---|---|
Contente | 2 Bushel of corn | 0.5 Pair of Jeans |
Felicidad | 4 Bushel of Corn | 0.25 Pair of Jeans |
Contente opportunity cost of producing 1 pair of Jeans is 2 Bushels of Corn, Felicidad opportunity cost of producing 1 pair of Jeans is 4 Bushels of corn. Therefore, Contente has a comparative advantage in the production of Jeans, and Felicidad has comparative advantage in producing Corn.
Contente will produce only Jeans and Felicidad will produce only corn.
The country that produce only Jeans will produce 24 million pairs per month, and the country that produces only corn will produce 64 million bushels per month.
Due specialisation Total production of jeans has increased by 6 million pairs of jeans per month, and the total production of Corn has increased by 22 million bushels of Corn.
For the table refer the attached picture below
Please contact if having any query thank you.
3. Gains from trade Consider two neighboring island countries called Contente and Felicidad. They each have...
3. Gains from trade Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours available per month that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Country Corn Jeans (Bushels per hour of labor) (Pairs per hour of labor) Felicidad 4 16 Contente 5 10 Initially, suppose Contente uses 1...
Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Country(Pairs per hour of labor) Felicidad Contente Corn (Bushels per hour of labor) 16 12 4 Initially, suppose Contente uses 1 million hours of labor per month to...
3. Gains from trade Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million labor hours available per month that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn (Bushels per hour of labor) Jeans (Pairs per hour of labor) Country Bellissima Felicidad Initially, suppose Bellissima uses 1 million hours of labor per...
Consider two neighboring island countries called Contente and Felicidad. They each have 4 million labor hours available per month that they can use to produce corm, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Contente 8 16 Felicidad 5 20 Initially, suppose Contente uses 1 million hours of labor per...
3. Gains from trade Consider two neighboring island countries called Dolorium and Contente. They each have 4 milion labor hours available per month that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn (Bushels per hour of labor) Country Dolorium Contente (Pairs per hour of labor) 8 Initially, suppose Contente uses 1 million hours of labor...
3. Gains from trade Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans (Pairs per hour of labor) Corn (Bushels per hour of labor) Country Euphoria Contente Initially, suppose Contente uses 1 million hours of labor per...
3. Gains from trade Consider two neighboring island countries called Felicidad and Bellissima. They each have 4 labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn Country Felicidad Bellissima Jeans (Pairs per hour of labor) 20 (Bushels per hour of labor) Initially, suppose Bellissima uses 1 million hours of labor per...
4. Gains from trade Consider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans (Pairs per hour of labor) Corn (Bushels per hour of labor) Country Contente Euphoria 16 20 Initially, suppose Contente uses 1 million hours of...
2. Gains from trade Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor. Jeans Corn (Pairs per hour of labor) (Bushels per hour of labor) Country Felicidad 8 32 Arcadia 12 24 Initially, suppose Arcadia uses 1 million hours...
3. Gains from trade Consider two neighboring island countries called Felicidad and Arcadia. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans (Pairs per hour of labor) Rye (Bushels per hour of labor) Country Felicidad Arcadia 12 Initially, suppose Arcadia uses 1 million hours of labor...