Country M can produce 50 million bicycles or 60 million refrigerators per year. Country N can produce

Question:

Country M can produce 50 million bicycles or 60 million refrigerators per year.

Country N can produce 75 million bicycles or 50 million refrigerators per year.

The production possibilities curve for each country is linear.

a. What is the opportunity cost of bicycles in each country? What is the opportunity cost of refrigerators in each?

b. Which country has a comparative advantage in producing bicycles? Why?

c. Should these two countries trade? If not, why not? If so, which country would produce bicycles and which country would produce refrigerators?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Labor Economics Theory And Public Policy

ISBN: 9780132540643

11th Edition

Authors: Ronald Ehrenberg, Robert Smith

See More Books

Question Posted: Feb 10, 2024 07:00 AM

See More Questions

Country C can produce 200 tons of wheat or 50 million automobiles per year. Country D can produce 500 tons of wheat or 125 million automobiles per year. The production possibilities curve for each...
Assume there are two countries in the world, Highland (H) and lowland (L). Both countries are initially self-sufficient in that they do not trade with each other, a condition called "autarky." Each...
Multiple Choice Questions: 1. Which of the following is the most accurate statement about a production possibilities curve? a. An economy can produce at any point inside or outside its production...
Describe and sketch the surface. 16x + 16y -9z = 0
1. How do all levels of management demonstrate leadership of the Business Continuity Management System? 2. Steering committees in some organizations tend to be counterproductive. If this is the case,...
In a test of the claim that a majority of Americans favor registration of all handguns, the null hypothesis is p = 0.5 and the alternative hypothesis is p > 0.5. Decide whether the statement makes...
If $10 \mathrm{~J}$ of magnetic potential energy is stored in a $5.0-\mathrm{H}$ inductor, what is the current in the inductor?
Glass Tech manufactures fiberglass housings for portable generators. One part of the housing is a metal latch. Currently, the company produces the 120,000 metal latch units required annually. Company...
12. If the velocity-time graph has the shape AMB, what would be the shape of the corresponding acceleration-time graph? (A) a (B) (C) A (D) a A M B time(t)
Suppose the marginal productivity of customer service representatives in a rich country is MP L = 17 - .6L, where L = the number (in thousands) of workers. The marginal productivity of customer...
Television commentator D makes the following statement: The fact that greater trade increases overall national income tells us all we need to know: greater trade is good for our society. Comment...
Present the organizational, group, and individual causes of resistance to change.
how could an autidor test do test of controls for Amazon's sales and collection cycle
You are the Audit Trainee at KIC Chartered Accountants and Auditors. You are part of the engagement team currently auditing Ezulwini Plumbing Manufacturers Ltd. This assignment is nearing the end....
A force, as measured by a gauge, of 300 kN is applied to a piston of a cylinder, compressing the gas within the cylinder. If the piston has a radius of 0.5 m and the atmospheric pressure is 100 kPa,...
Case Study: Auditing in Nonprofit Organizations Introduction: Auditing in nonprofit organizations presents a unique set of challenges and opportunities. In this case study, we examine the experiences...
Impact on Financial Provision and Property Allocation: Discuss how these principles have contributed to a more equitable and fair approach to asset division in Miller McFarlane [2006] UKHL 24
If bicycle owners do not know whether they are high- or low-risk consumers, is there an adverse selection problem?
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cashflows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit...
Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporation). In the current year, each corporation has operating income of...
Determine whether the following expenditures by Cuckoo Corporation are organizational expenditures, startup expenditures, or neither. a. Legal expenses incurred for drafting the corporate charter and...
When are C corporations required to make estimated tax payments? How are these payments calculated?
Today ABC Corp. starts a project that requires it to invest in new equipment of $826,000. Doing so will earn ABC pre-tax cash flows of $153,000 annually over 8 years. The equipment has a salvage...
After reviewing the financial statements for Clear Channel Outdoor, I can make some inferences about how the company is performing. These inferences provide an overview of the company's performance...
What is an example of an organization that you feel provides excellent external customer service? Describe this organization and how it provides excellent customer service

Country M can produce 50 million bicycles or 60 million refrigerators per year. Country N can produce

Question:

Step by Step Answer:

a In Country M 60 million refrigerators would be given up in order to produce 50 million bicyc...View the full answer

Modern Labor Economics Theory And Public Policy

Students also viewed these Business questions