Question: how do we find the answer to this question. Screenshot is provided. This exercise applies the basic Ricardian model of one factor and two goods.

how do we find the answer to this question. Screenshot is provided.

how do we find the answer to this question. Screenshot is provided.

This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the unit labor requirements in Foreign and Home for each of two goods. where: Cheese Whiskey Home em = 6 hours per pound aLw = 5 hours per gallon Foreign all: = 2 hours per pound a:w = 6 hours per gallon em = number of labor hours needed to produce a unit of cheese in Home; aLw = number of labor hours needed to produce a unit of whiskey in Home; 3:0 = number of labor hours needed to produce a unit of cheese in Foreign; alfw = number of labor hours needed to produce a unit of whiskey in Foreign; PC = the absolute or money price of cheese on world markets; PW = the absolute or money price of whiskey on world markets. In post-trade equilibrium with PC = PW = $20, the wage of workers in Foreign relative to the wage of workers in Home will be equal to: O A. 2.5. O B. $2.5. O c. 0.4. o D. $10

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