Question: (b) The following table presents the labour input required per unit of each of the two commodities in Malaysia and Indonesia: Malaysia Indonesia Durian (hour/kg)


(b) The following table presents the labour input required per unit of each of the two commodities in Malaysia and Indonesia: Malaysia Indonesia Durian (hour/kg) 4 3 Coconut (hour/kg) 2 2 Table 1. Number of labour hours required to produce one unit (i) If Malaysia and Indonesia decide to exchange durian and coconut, what is the pattern of trade? (ii) What is the range for mutually beneficial trade for 8kg of coconuts
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
