Question: Hi , i need help with this 1 question . Question 4 (25 marks) Combined word limit: 300 The following table presents the labour input

 Hi , i need help with this 1 question . Question

Hi , i need help with this 1 question .

4 (25 marks) Combined word limit: 300 The following table presents the

Question 4 (25 marks) Combined word limit: 300 The following table presents the labour input required per unit of batik and songkok in Indonesia and Malaysia (assuming constant returns to scale): Indonesia Malaysia Batik (hour/meter) 8 10 Songkok (hour/unit) 1/2 1 (a) Sketch a production possibility frontier for an 24-hour work-day, for each country. Label your diagrams correctly. [6 marks] (b) Which country has an absolute advantage in producing batik? Which country has an absolute advantage in producing songkok? Explain and justify your answers. [6 marks] (c) Which country has a comparative advantage in producing batik? Which country has a comparative advantage in producing songkok? Explain and justify your answers. [6 marks] (d) Suppose Indonesia and Malaysia trade batik and songkok with each other. 1. What is the range for mutually-beneficial trade for 4 meters of batik? Explain and PM justify your answers. [4 marks] ii. Suppose that Malaysia exchanges 4 meters of batik for 50 songkok with Indonesia. How much does Malaysia gain in terms of songkok? [1.5 marks] How much does Indonesia gain in terms of songkok? [1.5 marks]

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