Business, 20.03.2020 17:38 kiyahlove7537

Consider the productivity table below: a)Which country has an absolute advantage at making rotids? At making taurons?

Number of Hours Number of Hours

to Make One Rotid to Make One Tauron

Mandovia 50 100

Ducennia 150 20

b) Using the information in the productivity table above, estimate the opportunity

cost of making rotids and taurons in Mandovia and Ducennia.

c) There are 1 billion hours of labor available for making products in Mandovia, and 2 billion hours of labor available for making products in Ducennia. In a no-trade world, let’s assume that half the labor in each region gets used to make each product.

Fill in the table.

Output of Rotids Output of Taurons

Mandovia

Ducennia

Total output

d) Now allow specialization. If each country completely specializes in the in which it holds the comparative advantage, what will be the total output of rotids be? Of taurons? Is total output of each product higher than before?
e)Let’s open for trade. Suppose both sides agree is three rotids for two taurons. Ship 5 million taurons in one direction, and 7.5 million rotids in the other direction. What will be final consumption bundle for Mandovia and Ducennia?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:00

The maximum tax rate on estates and gifts

Answers: 1

Answer

Business, 22.06.2019 20:40

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005

Answers: 1

Answer

Business, 22.06.2019 20:50

How has apple been able to sustain its competitive advantage in the smartphone industry? a. by reducing its network effects b. by targeting its new products and services toward laggards c. by driving the price for the end user to zero d. by regularly introducing incremental improvements in its products

Answers: 1

Answer

Business, 22.06.2019 21:30

Suppose that alexi and tony can sell all their street tacos for $2 each and all their cuban sandwiches for $7.25 each. if each of them worked 20 hours per week, how should they split their time between the production of street tacos and cuban sandwiches? what is their maximum joint revenue?

Answers: 3

Answer

You know the right answer?

Consider the productivity table below: a)Which country has an absolute advantage at making rotids? A...

Questions