3. Assume a Ricardian, constant-cost world. There are two countries, the UnitedKingdom and France. Each country can produce cameras and milk. The tablebelow shows production per man-hour for each country.UnitedFranceKingdomCameras2Milk1The United Kingdom has a labour force of 1,000 workers, and France has a laborforce of 500workers.a) Graph the world supply curve for cameras.b) Show a possible world demand curve and price (assuming that both countriescompletely specialize).

To find which country has a comparative advantage in which good, the relative unit labor…

3. 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 labour force of 1,000 workers, and France has a labor force of 500 workers. a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).

3. 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 labour force of 1,000 workers, and France has a labor force of 500 workers. a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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