Assume that there are only two countries: East and West both producing cups and plates. These...
Assume that there are only two countries: East and West both producing cups and plates. These two countries have identical demand, production technology, and resource endowment. Each country has 6,000 labor hours available of which it allocates equally to each industry. Labor requirements for a cup is 2 hours and for a plate is 4 hours. Labor requirement for cups does not change with the quantity of output. On the other hand, when East produces 1,750 or more plates, its labor requirement for plates decreases to 3 hours. What is the price of one cup (in terms of plate) for West?
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Assume that there are only two countries: East and West both
producing cups and plates. These...
Assume that there are only two countries: Eastland and Westland both producing cups and plates. These...
Assume that there are only two countries: Eastland and Westland both producing cups and plates. These two countries have identical demand, production technology, and resource endowment. Each country has 6,000 labor hours available of which it allocates equally to each industry. In one hour, each country can produce 5 cups and 3 plates. The labor productivity for plates does not change with the quantity of output. On the other hand, when Eastland produces 30,000 or more cups, its productivity increases...
Assume that there are only two countries: Home and Foreign, both producing hats and coats. These...
Assume that there are only two countries: Home and Foreign, both producing hats and coats. These two countries have identical demand, production technology, and resource endowment. Each country has 100 labor hours available of which it allocates equally to each industry. Let productivities be 8 coats/hr., and 25 hats/hr. The productivity for hats does not change with the quantity of output. On the other hand, when Home produces 750 or more coats, its productivity increases to 10 coats/hr. According to...
1. Economies of Scale Assume that there are only two countries: Home and Foreign both producing...
1. Economies of Scale Assume that there are only two countries: Home and Foreign both producing smart phones and computers. endowment. Each country has 100,000 labor hours available of which it allocates equally to each These two countries have identical demand, production technology, and resource industry. The unit labor requirement is 20 hours for phones and 25 hours for computers. The labor requirement for phones does not change with the quantity of output. On the other hand, the unit labor...
Midtown Manufacturing Company makes plastic plates and cups, both of which require time on two machines....
Midtown Manufacturing Company makes plastic plates and cups, both of which require time on two machines. Producing a unit of plates requires 1 hour on Machine A and 2 hours on Machine B, while producing a unit of cups requires 3 hours on Machine A and 1 hour on Machine B. Each machine is operating for mostly 15 hours per day. Each unit of plates brings in $10 in profit for the company and each unit of cups brings in...
Answer questions 3 through 6 based on the following information: There are two countries, Home and...
Answer questions 3 through 6 based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that w and w*represent Home's and Foreign's hourly...
1. Compare the absolute and comparative advantages for two countries. Suppose there are two countries A...
1. Compare the absolute and comparative advantages for two countries. Suppose there are two countries A and B producing two products X and Y. The unit labor requirement for two countries and two products are: a A X = 1; a A Y = 5; a B X = 10; a B Y = 10 • Which country has absolute advantage in producing X? Why? • Which country has comparative advantage in producing X? Why? • Suppose there are LA...
Consider two identical countries, country A and country B, that both produce shampoo, a good characterized...
Consider two identical countries, country A and country B, that both produce shampoo, a good characterized by product differentiation, with identical increasing returns to scale technology. Each variety of shampoo is produced by a different firm, so the market exhibits all the characteristics of the monopolistic competition model of trade. 1)If country A and country B trade, what type of trade would be more likely to occur: intra industry or inter industry? WHY? 2)If two countries are allowed to trade...
wh. laa Answer questions 3 through 6 based on the following information: There are two countries,...
wh. laa Answer questions 3 through 6 based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that w and w represent Home's...
KFrance and Italy only trade with each other; (each country is only capable of producing 2...
KFrance and Italy only trade with each other; (each country is only capable of producing 2 goods, Wine and Bread; (the production of Bread is relatively capital intensive, and the production of Wine is relatively labor intensive, and (France is relatively abundant in capital, while Italy.is relatively abundant in labor. All assumptions from our class about the Heckscher-Ohlin model hold, in particular the fact that both countries have identical homothetic preferences, constant returns to scale in production, the countries are...
7 to 12 answers I need please this is MCQ )Assume that only two countries, A...
7 to 12 answers I need please this is MCQ
)Assume that only two countries, A and B, exist Consider the following data Factor Endowments 45 15 Labor 10 Cepited Stck If good S is capital intensive, then following the Heckscher-Ohlin Theory A) country A will export good S. B) country B will export good S C) both countries will export good S D) trade will not occur between these two countries. E) Insufficient information is given. 8) Continuing from...
1. Economies of Scale Assume that there are only two countries: Home and Foreign both producing smart phones and computers. endowment. Each country has 100,000 labor hours available of which it allocates equally to each These two countries have identical demand, production technology, and resource industry. The unit labor requirement is 20 hours for phones and 25 hours for computers. The labor requirement for phones does not change with the quantity of output. On the other hand, the unit labor...
Midtown Manufacturing Company makes plastic plates and cups, both of which require time on two machines. Producing a unit of plates requires 1 hour on Machine A and 2 hours on Machine B, while producing a unit of cups requires 3 hours on Machine A and 1 hour on Machine B. Each machine is operating for mostly 15 hours per day. Each unit of plates brings in $10 in profit for the company and each unit of cups brings in...
Answer questions 3 through 6 based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that w and w*represent Home's and Foreign's hourly...
wh. laa Answer questions 3 through 6 based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that w and w represent Home's...
KFrance and Italy only trade with each other; (each country is only capable of producing 2 goods, Wine and Bread; (the production of Bread is relatively capital intensive, and the production of Wine is relatively labor intensive, and (France is relatively abundant in capital, while Italy.is relatively abundant in labor. All assumptions from our class about the Heckscher-Ohlin model hold, in particular the fact that both countries have identical homothetic preferences, constant returns to scale in production, the countries are...
7 to 12 answers I need please this is MCQ
)Assume that only two countries, A and B, exist Consider the following data Factor Endowments 45 15 Labor 10 Cepited Stck If good S is capital intensive, then following the Heckscher-Ohlin Theory A) country A will export good S. B) country B will export good S C) both countries will export good S D) trade will not occur between these two countries. E) Insufficient information is given. 8) Continuing from...
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