(b) Assume that Vietnam and Korea produce only two goods: noodles and wine. Further assume that...

 

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(b) Assume that Vietnam and Korea produce only two goods: noodles and wine. Further assume that each country is endowed with 300 labor hours which can be used to produce noodles and wine. The following table shows the number of labor hours required to produce one unit of noodles and wine in each country Labor hours required to produce 1 unit of noodles and wine Wine Noodles Vietnam 6 15 Korea 3 12 (i) If there is no trade between the two countries, suppose Vietnam uses half of its labor resource ( i.e. 150 hours) to produce noodles and the other half to produce wine, while Korea devotes 204 hours to produce noodles and 96 hours to produce wine. Calculate the output of noodles and wine in each country. (b) Assume that Vietnam and Korea produce only two goods: noodles and wine. Further assume that each country is endowed with 300 labor hours which can be used to produce noodles and wine. The following table shows the number of labor hours required to produce one unit of noodles and wine in each country Labor hours required to produce 1 unit of noodles and wine Wine Noodles Vietnam 6 15 Korea 3 12 (i) If there is no trade between the two countries, suppose Vietnam uses half of its labor resource ( i.e. 150 hours) to produce noodles and the other half to produce wine, while Korea devotes 204 hours to produce noodles and 96 hours to produce wine. Calculate the output of noodles and wine in each country.

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Vietnam Total 300 hours Total hours150150 No... View the full answer