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 |
1) persia has an absolute advantage in coffee production as 20 > 8
2) persia has an absolute advantage in banana production as 12 > 6
3) persia opportunity cost to produce 1 additional kg of coffee is 12 / 20 bananas or 0.6 bananas
4) persia opportunity cost to produce 1 additional kg of bananas is 20 / 12 bananas or 1.67 coffee.
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 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...
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 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 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 Peruvia 12 15 Zululand 6 5 Which nation has an absolute advantage in bananas 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 Which nation has an absolute advantage in coffee production?
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...