2. Assume a Ricardian, constant-cost world. There are two countries, the United Kingdom and France. Each country can produce cameras and milk. The table below shows production per man-hour for each country. United France Kingdom Cameras 6 2 Milk 1 2 The United Kingdom has a labor force of 1,000 workers, and France has a labor force of 500 workers. a) Use this information to graph production possibilities frontiers for both countries. Put cameras on the horizontal axis. b) Assuming that a world price is established at which both countries can gain from trade, show possible consumption frontiers for each country.
2. Assume a Ricardian, constant-cost world. There are two countries, the United Kingdom and France. Each country can produce cameras and milk. The table below shows production per man-hour for each country. United France Kingdom Cameras 6 2 Milk 1 2 The United Kingdom has a labor force of 1,000 workers, and France has a labor force of 500 workers. a) Use this information to graph production possibilities frontiers for both countries. Put cameras on the horizontal axis. b) Assuming that a world price is established at which both countries can gain from trade, show possible consumption frontiers for each country.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![2. Assume a Ricardian, constant-cost world. There are two countries, the United
Kingdom and France. Each country can produce cameras and milk. The table
below shows production per man-hour for each country.
United
France
Kingdom
Cameras
Milk
1
2
The United Kingdom has a labor force of 1,000 workers, and France has a labor force
of 500
workers.
a) Use this information to graph production possibilities frontiers for both
countries. Put cameras on the horizontal axis.
b) Assuming that a world price is established at which both countries can gain
from trade, show possible consumption frontiers for each country.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f62cc87-c811-4cf9-9b28-a215533484a5%2F510ab619-981f-431c-933a-02a47d6198ee%2Fqru9zph_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Assume a Ricardian, constant-cost world. There are two countries, the United
Kingdom and France. Each country can produce cameras and milk. The table
below shows production per man-hour for each country.
United
France
Kingdom
Cameras
Milk
1
2
The United Kingdom has a labor force of 1,000 workers, and France has a labor force
of 500
workers.
a) Use this information to graph production possibilities frontiers for both
countries. Put cameras on the horizontal axis.
b) Assuming that a world price is established at which both countries can gain
from trade, show possible consumption frontiers for each country.
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