K This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the unit labor requirements in Home for each of two goods. Shrimp = 1 hour per pound where: OA. $9. Home als als = number of labor hours needed to produce a unit of shrimp in Home; aLG = number of labor hours needed to produce a unit of gasoline in Home; Ps = the price per pound of shrimp; PG If the price per gallon of gasoline (PG) is $9, the hourly wage rate in the gasoline sector of Home's economy will be = the price per gallon of gasoline. OB. $0.33. Gasoline aLG = 3 hours per gallon O C. $3. OD. $27.

where: a = number of labor hours noeded to produce a unit of shrimp in Home: a.G = number of labor hours needed to produce a unt of gasoline in Home. Pg= the price per pound of shrmp. Po * the price per gation of gasoline price per galion of gotoline (Po) is 59 , the hourly wage rate in the gasolne sector of / tome's oconomy, wis be A. 39. B. 5033 c. 53