Suppose all workers in Argentina are identical, and that a typical worker there can produce either...

 

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Suppose all workers in Argentina are identical, and that a typical worker there can produce either 1 automobile or 2 tons of corn in a day. a. Suppose the terms of trade in world markets are 1 automobile per ton of corn. What good will Argentina what to specialize in? What is its CPC (per worker, per day)? b. Suppose the terms of trade in world markets are 1/3 automobile per ton of corn. What good will Argentina what to specialize in? What is its CPC (per worker, per day)? Suppose all workers in Argentina are identical, and that a typical worker there can produce either 1 automobile or 2 tons of corn in a day. a. Suppose the terms of trade in world markets are 1 automobile per ton of corn. What good will Argentina what to specialize in? What is its CPC (per worker, per day)? b. Suppose the terms of trade in world markets are 1/3 automobile per ton of corn. What good will Argentina what to specialize in? What is its CPC (per worker, per day)?

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a If the terms of trade in world markets are 1 automobile per ton of corn Argentina will want to spe... View the full answer