Hello, I am having problems with these two questions. Refer to attached picture for questions. Consider two countries, Korea and Malaysia, and two goods, lumber and automobiles. Korea’s PPF is biased towards automobiles, and Malaysia’s PPF is biased towards lumber. They have the normal, concave to origin, increasing opportunity cost shape. 3. If K denotes Korea, M denotes Malaysia, L denotes lumber, and A denotes automobiles,(%)*me %]to describe the pattern of comparative advantageandLPuse(%)"4. In a new pair of PPF diagrams, illustrate the trading equilibrium withForboth countries, lustrate the production point (B), the consumption point (C), thequantity of imports, and the quantity of exports

It is given that there are two nations (Korea and Malaysia) that produces two goods (Lumber and…

Answered: 3. If K denotes Korea, M denotes…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hello, I am having problems with these two questions. Refer to attached picture for questions.

Consider two countries, Korea and Malaysia, and two goods, lumber and automobiles. Korea’s PPF is biased towards automobiles, and Malaysia’s PPF is biased towards lumber. They have the normal, concave to origin, increasing opportunity cost shape.

3. If K denotes Korea, M denotes Malaysia, L denotes lumber, and A denotes automobiles,
(%)*me %]
to describe the pattern of comparative advantage
and
L
P
use
(%)"
4. In a new pair of PPF diagrams, illustrate the trading equilibrium with
For
both countries, lustrate the production point (B), the consumption point (C), the
quantity of imports, and the quantity of exports

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