Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 24 million pairs of jeans and 32 million bushels of rye, and Arcadia produces 12 million pairs of jeans and 72 million bushels of rye. 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 jeans and rye it produces. Felicidad's opportunity cost of producing 1 pair of jeans is of rye, and Arcadia's opportunity cost of producing 1 pair of jeans is of rye. Therefore, has a comparative advantage in the production of jeans, and has a comparative advantage in the production of rye. 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 jeans will produce million pairs per week, and the country that produces rye will produce million bushels per week.
Solved
Show answers
More tips
- H Horoscopes, Magic, Divination How to Cast a Love Spell on a Guy? Guide for Guys...
- F Family and Home How to Sew Curtain Tapes: Best Tips from Professionals...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- F Food and Cooking The Disease That Haunted Abraham Lincoln...
- C Computers and Internet How to Get Rid of Windows Genuine Check?...
- H Health and Medicine How to perform artificial respiration?...
- S Style and Beauty Tricks and Tips: How to Get Rid of Freckles...
- C Computers and Internet How Do You Refill Cartridges?...
- A Auto and Moto Battle for the Relocation of The Cherkizovsky Market: Who Won?...
Answers on questions: Business
- M Mathematics Danica sold cookies as a fund raiser each day for 7 days. She raised $27, $25, $19, $20, $22, $23, and $11. Identify the outlier and explain how an increase in the outlier...
- M Mathematics Average Points Scored Per Minute The first table below shows the total number of points scored up to the number of minutes listed. In the second table, compute the average...
Ответ:
one is the correct answer.
Explanation: