Imagine a world with two countrics: the US and Mexico. There are two goods: avocados (A)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Imagine a world with two countrics: the US and Mexico. There are two goods: avocados (A) and corn (C). There is one factor of production: labor (L). The MPL for corn and avocados is as follows: Country USA MEX MPLA MPLe Opp. Cost of A Opp. Cost of C (1) What is the opportunity cost. of corn and avocados in the two countries? Report. your answer in the table above. (2) What country has absolute advantage in corn? In avocados? (3) What country has comparative advantage in corn? In avocados? (4) What is the autarky relative price of corn in the US, and in Mexico? Imagine a world with two countrics: the US and Mexico. There are two goods: avocados (A) and corn (C). There is one factor of production: labor (L). The MPL for corn and avocados is as follows: Country USA MEX MPLA MPLe Opp. Cost of A Opp. Cost of C (1) What is the opportunity cost. of corn and avocados in the two countries? Report. your answer in the table above. (2) What country has absolute advantage in corn? In avocados? (3) What country has comparative advantage in corn? In avocados? (4) What is the autarky relative price of corn in the US, and in Mexico?
Expert Answer:
Answer rating: 100% (QA)
Answer Given that Country US Mexico Avocados 1 12 Corn 2 15 1 For US Opportunit... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
(3) How much does country A export and import of goods 1 and 2? 2. ENDOWMENT MODEL Consider a world with two goods and many countries. Total world endowment of good 1 is 1000 units and of good 2 is...
-
Consider a world with two time periods and two possible states at cacti time t = 0, 1. 2. There are only to assets to invest. One is risk-free burrowing and lending at the risk-free rate ri, i = 0,...
-
Consider a world with two goods, corn and electronics, and two identical countries, Home and Foreign. There is only one factor of production, labor, and there are 1,500 workers in each country, each...
-
A score of X = 75 is measured in a population with a mean of = 100. A z-score of z = +1.50 is calculated. Without knowing the standard deviation, explain why the z-score of z = +1.50 is incorrect.
-
Goose Corporation, a C corporation, incurs a net capital loss of $12,000 for 2015. It also has ordinary income of $10,000 in 2015. Goose had net capital gains of $2,500 in 2011 and $5,000 in 2014. a....
-
David (Dai) Etcoak decided to set up a drinks wholesale business, Etcoakco, on 1 December 2009. He had 100,000 available to invest, which is the amount he felt was required to set up the business. In...
-
Whether hearsay evidence may be admissible under a hearsay exception?
-
A contractor intends to bid on a job installing 30 airport security systems. Because this will be a new line of work for the contractor, he believes there will be a learning effect for the job. After...
-
1)Your employer is developing Project 11 to compete directly with Private Label Software (PLS). You are assigned the task of finding the cost of capital for this project. Your analysis suggests that...
-
Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes. 2. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--Round your...
-
Consider the incremental analysis and capital budgeting methods that are included this week. Choose two of those methods and provide examples to the class of how you can or do use them in your career...
-
During 2023, it was common on some social media sites and internet discussion boards to hear people say, No one is willing to work anymore. Go to the Hubbard and OBrien Economics Blog and read the...
-
In 2023, an article in the Wall Street Journal noted that many employers say they had to raise wages last year to recruit and hold on to restaurant servers, hotel housekeepers, and retail store...
-
Graph each sequence in Problems 27-34 in one dimension. \(a_{n}=\frac{n+1}{n^{2}}\)
-
Graph the first-degree inequalities in two unknowns in Problems 13-48. \(2 x-3 y+6 \leq 0\)
-
In April 2023, an article in the Economist discussed Apples plans to increase the number of iPhones manufactured in India. According to the article, Apple is scrambling to avoid having all its apples...
-
Select all that apply In the context of a test, identify the uses of item response theory (IRT) information curves. (Check all that apply.) Multiple select question. tailoring an instrument to...
-
The text defined intrinsic value as the value of an asset given a hypothetically complete understanding of the assets investment characteristics. Discuss why hypothetically is included in the...
-
You have just purchased a new Ford Taurus for $20,000, but the most you could get for it if you sold it privately is $15,000. Now you learn that Toyota is offering its Camry, which normally sells for...
-
Why do we permit airplanes but not real estate developers to use the airspace over private homes without prior consent?
-
Sue consumes only two goods, food and clothing. The marginal utility of the last dollar she spends on food is 12, and the marginal utility of the last dollar she spends on clothing is 9. The price of...
-
Determine the state of stress at point \(A\) on the cross section of the post at section \(a-a\). Indicate the results on a differential element at the point. 5ft 400 lb a 1.5 ft 300 lb a 2.5 in. 2...
-
The rod has a diameter of \(40 \mathrm{~mm}\). Determine the stress components that act at point \(B\), and show the results on a volume element located at this point. 1500 N 300 mm 600 N 100 Nm 800...
-
Determine the state of stress at point \(B\) on the cross section of the post at section \(a-a\). Indicate the results on a differential element at the point. 5 ft 400 lb 1.5 ft 300 lb a a 2.5 in.- 2...
Study smarter with the SolutionInn App