Suppose there are 4 different products in a Ricardian world: apples, broccoli, beans and leather. The...

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Suppose there are 4 different products in a Ricardian world: apples, broccoli, beans and leather. The table below shows unit labour requirements in the North and South for each product: a North South Apples 3 4 Broccoli 3 4 Beans 3 5 Leather 3 8 Assume the wage in the South equals $10 and the wage in the North equals $20. a) Create a table similar to the table above reporting the marginal product of labor for each good and country. Explain how you derive these values. b) Which goods will the North export? Which will the South export? Explain. c) What would be the minimum tariff that makes countries prefer not to trade? Explain your answer. Suppose there are 4 different products in a Ricardian world: apples, broccoli, beans and leather. The table below shows unit labour requirements in the North and South for each product: a North South Apples 3 4 Broccoli 3 4 Beans 3 5 Leather 3 8 Assume the wage in the South equals $10 and the wage in the North equals $20. a) Create a table similar to the table above reporting the marginal product of labor for each good and country. Explain how you derive these values. b) Which goods will the North export? Which will the South export? Explain. c) What would be the minimum tariff that makes countries prefer not to trade? Explain your answer.

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Question The answer provided below has been developed in a clear step by step manner Step 1 According to Ricardian the countries will send trade the g... View the full answer