Question: please answer This exercise applies the basic Ricardian model of one factor and two goods. The table below contains the unit labor requirements in Home
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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 Glue Home als = 6 hours per pound aLe = 5 hours per gallon where: a s = number of labor hours needed to produce a unit of shrimp in Home; aLG = number of labor hours needed to produce a unit of glue in Home; Pg = the price per pound of shrimp; Pa = the price per gallon of glue. If the price per pound of shrimp (P) is $18, the hourly wage rate in the shrimp sector of Home's economy will be O A. $3. O B. $18. O C. $108. O D. $0.33
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