Business, 26.10.2021 19:20 Brooke7644

Ricardo Model: Suppose there are two countries, Home and Foreign that produce two goods, fish (F) and edamame (E), using only labor. In the Home country 6 units of labor are required to produce each unit of fish and the same for each unit of edamame. In the Foreign country, 2 units of labor is required to produce each fish and 3 units of labor are required for each unit of edamame. Each country has a labor force of 30 units available for production. a. Which country has an absolute advantage in fish? in edamame? Why?
b. Which country has a comparative advantage in which good?
c. Write the equation of the production possibilities frontier for each country and draw them (with Qf on the vertical axis and Qe on the horizontal axis). The PPF represents the possible points of production of fish and edamame. What does the slope of this frontier indicate?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 09:00, jamesgraham577

Afood worker has just rinsed a dish after cleaning it. what should he do next?

Answers: 2

continue

Business, 22.06.2019 14:30, lilquanreem8051

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?

Answers: 3

continue

Business, 22.06.2019 19:30, Athenax

Do a swot analysis for the business idea you chose in question 2 above. describe at least 2 strengths, 2 weaknesses, 2 opportunities, and 2 threats for that company idea.

Answers: 2

continue

Business, 22.06.2019 20:10, cyndy50

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. in the context of this scenario, which of the following statements is true? a. the industry for cell phones with holographic keyboards will face greater competition than the tablet industry. b. while the industry for cell phones with holographic keyboards will focus more on product innovation, the tablet industry will focus more on process innovation. c. while the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits. d. the industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

Answers: 2

continue

You know the right answer?

Ricardo Model: Suppose there are two countries, Home and Foreign that produce two goods, fish (F) an...