Question

Homework (Ch 03) a se Prvu etye, jedis, U Country Felicidad Rye (Bushels per hour of labor) 5 Jeans (Pairs per hour of lab Contente Initially, suppose Contente uses 1 million hours of labor per month to produce rye and 3 million hours per month to produce jeans, while Felicidad uses 3 million hours of labor per month to produce rye and 1 million hours per month to produce Jeans. Consequently, Felicidad produces 15 million bushels of rye and 20 million pairs of jeans, and contente produces 8 million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces Felicidad's opportunity cost of producing 1 bushel of rye is of jeans, and Contente's opportunity cost of producing 1 bushel of rye is of jeans. Therefore, has a comparative advantage in the production of rye, and has a comparative advantage in the production of jeans. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce million bushels per month, and the country that produces jeans will produce million pairs per month

Answer 1

Blanks are answered in order

1) 20/5= 4 pairs

2) 16/8= 2 pairs

3) Contente

4) Felicidad

5) 8*4= 32

6) 20*4= 80