2 Consider a Specific Factors model with two countries, Home H and Foreign F, three factors of production, labour L, capital K and land T, and two goods, cars c and bread b. The production functions are the same in both countries and given by: 1 Fe(Ke, Le) = K L} and Fr(Lb, Tv) = L}{T}³ Denote the factor prices by r for capital, w for labour and q for land. The price for cars is pc, the price for bread pb. Home's factor endowment is given by KH = 8, LH = 1 and TH = 1, Foreign's factor endowment by KF = 1, LF = 1 and TF = 1. Suppose that relative demand for the goods is the same in both countries: Normalise bread price ie P₁ = PH= P=1 H ¹/x = pt/pc and x/x = Pb/pc. a) Derive autarky equilibrium good and factor prices in both Home and foreign and show that PH

2 Consider a Specific Factors model with two countries, Home H and Foreign F, three factors of production, labour L, capital K and land T, and two goods, cars c and bread b. The production functions are the same in both countries and given by: 1 Fe(Ke, Le) = K L} and Fr(Lb, Tv) = L}{T}³ Denote the factor prices by r for capital, w for labour and q for land. The price for cars is pc, the price for bread pb. Home's factor endowment is given by KH = 8, LH = 1 and TH = 1, Foreign's factor endowment by KF = 1, LF = 1 and TF = 1. Suppose that relative demand for the goods is the same in both countries: Normalise bread price ie P₁ = PH= P=1 H ¹/x = pt/pc and x/x = Pb/pc. a) Derive autarky equilibrium good and factor prices in both Home and foreign and show that PH

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1
Exercise: 01 Issue a promissory note: ⑴Amount ￡3,026.00 ⑵Date and place of issue 8/August/2009，Guangzhou, China ⑶Tenor At 90 days after date ⑷Maker Guangdong Imp. & Exp. Co., Guangzhou ⑸Payee Chemicals Import & Export Company London ⑴Drawer Thames Enterprises Ltd., London ⑵Drawee The National Westminster Bank Ltd., London ⑶Payee Philips Hong Kong ⑷Date and place of issue 07/01/2001，London ⑸Amount GBP79,014 Exercise: 02 Issue a check:
2b
280 View Policies Current Attempt in Progress Carla Vista Company took a physical inventory on December 31 and determined that goods costing $236,000 were on hand. Not included in the physical count were $29,500 of goods purchased from Pelzer Corporation, FOB, shipping point, and $25,960 of goods sold to Alvarez Company for $35,400, FOB destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Carla Vista report as its December 31 inventory? Ending inventory Save for Later LA eTextbook and Media A $ 2 MAR 1 Attempts: 0 of 3 used Submit Answer
Multiple Choice $4,725.87 TB MC Qu. 10-45 (Static) Sara borrowed... Sara borrowed $5,000 on a 120-day 5% note. Sara paid $500 toward the note on day 40. On day 90, she paid an additional $500. Using the U.S. Rule, her adjusted balance after the first payment is: $4,527.78 $4,725.70 Save & Exit Check my
Legel Q L Given Given 76 248 492 +84 1.100 1,416 1.708 1.952 - NM & 1 2 3 4 S 9 > 7 8 K Given S N N N N N N N N 241 2 2 APL Q/L 76 124 A 961 220 B ttc 244 MPL AQ/AL J 244 292 316 ta DEMON
A company spends $14.7 million dollars for an office building. Over what period should the cost be expensed? O After $14.7 million in revenue is recognized. O When the $14.7 million is expended in cash. O Over the useful life of the building. O All in the first year. ttempts: 0 of 1 used Submit A
None
What is the markup price for the Acme1 battery? HINT: Calculate markup price as Unit Cost/ (1-Markup%) $30 $35.20 $42.50 $34
Price (dollars per gallon) $5.50 3.50 2.50 0 30 40 45 D S2 S₁ Quantity (millions of gallons per month)
Consider the market for running shoes. Draw a firm's average total cost curve with no advertising. Label it ATCO Draw the firm's average total cost curve with advertising. Label it ATC₁. If the firm successfully advertises, the quantity produced increases such that OA. total cost increases and average total cost increases OB. total cost decreases and average total cost increases C. total cost increases and average total cost decreases OD. total fixed cost decreases Click the graph, choose a tool in the palette and follow the instructions to create you