Answered: Assume that Derryland and Whetonia each…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Concept explainers

Question

pics is just for reference i need Q20 solution

Question 20

Refer to Table 1-1 in Question 11 and your answers to questions 11-18.

(Same scenario as Q 19)

Assume that Derryland and Whetonia each has 40 labor hours available and that there is no trade. Each country consumes what it produces.

Assume now that, without trade, Derryland spent 28 hours producing cheese and the remaining 12 hours producing bread. Whetonia spent 20 hours producing cheese and 20 hours producing bread.

What is the total output of BREAD produced by both countries combined?

Question 19
Refer to Table 1-1 in Question 11 and your answers to questions 11-18.
Assume that Derryland and Whetonia each has 40 labor hours available and that
there is no trade. Each country consumes what it produces.
Assume now that, without trade, Derryland spent 28 hours producing cheese (they
really like cheese there!) and the remaining 12 hours producing bread. Whetonia
spent 20 hours producing cheese and 20 hours producing bread. (Whetonians prefer
a higher bread to cheese ratio.)
What is the total output of CHEESE produced by both countries combined?

Assume that Derryland and Whetonia can switch between producing cheese and
producing bread at a constant rate.
Table 1-1
Labor Hours Needed to Make Number of Units Produced in 40
1 Unit of
Hours
Cheese
Bread
Cheese
Bread
Derryland
1
4
40
10
Whetonia
8
20

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions