Assume that the data in Case B in Table 2.5 refer to millions of bushels of wheat

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Assume that the data in Case B in Table 2.5 refer to millions of bushels of wheat and millions of yards of cloth.

(a) Plot on graph paper the production frontiers of the United States and the United Kingdom.

(b) What is the relative price of wheat (i.e., P_W/ P_C) in the United States and in the United Kingdom in autarky (no trade)?

Table 2.5

Production Possibilities in the United States and the United Kingdom

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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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Question Posted: Dec 09, 2015 02:46 AM

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Assume that the data in Case B in Table 2.5 refer to millions of bushels of wheat

Question:

Case A Case B Case C Case D U.S U.K U.S U.K U.S U.K U.S U.K Wheat (bushels/hour) Cloth (yards/hour) 4

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a b In the United States P W P C 3 4 w...View the full answer

International Economics

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