Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours.

Question: Is it possible for the wheat-exporting country to charge 12 bushels/yard for its wheat? Explain briefly.

Answer rating: 100% (QA)

To determine if it is possible for the wheatexporting country to charge 12 bushelsyard for its wheat ... View the full answer