Assume that Home and Foreign produce two goods, televisions and cars, and use the following infor...
7. Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions: In the No-Trade Equilibrium Home Foreign Wagerv = 12 Wagec = ? Wageiv=? Wagec = 6 MPLT=4 MPL = ? MPLiv=? MPL = 1 Prv=? Pc=4 Piv=8 P = ? a. What is the marginal product of labor for TVs and cars in Home? What is the no- trade relative price of TVs in Home? b. What is...
Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...
Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...
Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...
Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...
Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions. No-Trade Equilibrium Home Foreign wageTV= 12 wageC= ? wage*TV = ? wage*C= 6 aLTV = 0.5 aLC = ? aLTV * = ? aLC* = 1 PTV = ? PC = 4 PTV = 3 PC = ? a. What is the unit labor requirement for cars in Home? b. What is the no-trade relative price of TVs in...
MPLk=4 (part that was cut off) Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions a) The Home Country is endowed with 10 workers and has the following marginal products: MPLv Illustrate the Home country's PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) 2, MPL b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL,-1, MPL*k 3....
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour as the sole production factor. Home and Foreign have, respectively, 2400 and 1600 units of labour available and the unit labour requirements in the production of both goods are as shown in the following table: Home Foreign Apple 6 hours 10 hours Bananas 4 hours 2 hours 1. Construct the world relative supply curve and graph the relative demand curve along with the relative...
2. Suppose that Home and Foreign consumers have the same preferences over these two goods, and they are represented by the following utility function: U(Q ,Q ) = Q1/3Q2/3. cwcw a. Graph the consumer budget line of the Home country and add indifference curves to the figure. Find the amount of cheese and wine that people in Home country consume in the no-trade equilibrium? b. Graph the consumer budget line of the Foreign country and add indifference curves to the...
E-H ONLY. THERE ARE THREE PICTURES updated figure 2 roblem 2: Trade Policy. demand for cars in Home is q 30 - P and the supply of cars in Home is q -P. The demand for cars in Foreign is q 20-P and the supply of cars in Foreign is q P. a) Calculate the equilibrium price and quantity in each country under isolation. b) Who is the importer of cars and who is the exporter? c) Write the import...