Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions:HomeWageTy = 12MPL TV=4Prv=?In the No-Trade EquilibriumWagec = ?MPLC = ?Pc=4ForeignWage TV = ?MPL TV = ?PTV = 8Wage c = 6MPL c = 1Pc = ?A. What is the marginal product of labor for TVs and cars in the Home? What is the no-trade relative price of TVs in Home?

MPL refers to a firm's rise in total production when one more unit of labor is added , keeping all…

Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions: In the No-Trade Equilibrium Home WageTy=12 MPL TV=4 PTV = ? Wage c=? MPLC = ? Pc=4 Foreign Wage TV=? MPL TV=? PTV=8 Wage c=6 MPL c=1 Pc=? A. What is the marginal product of labor for TVs and cars in the Home? What is the no-trade relative price of TVs in Home?

Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions: In the No-Trade Equilibrium Home WageTy=12 MPL TV=4 PTV = ? Wage c=? MPLC = ? Pc=4 Foreign Wage TV=? MPL TV=? PTV=8 Wage c=6 MPL c=1 Pc=? A. What is the marginal product of labor for TVs and cars in the Home? What is the no-trade relative price of TVs in Home?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

See similar textbooks

Similar questions

There are two states: Apple State and Banana State. There are four homogeneous goods, one factor input (labor), and unit labor requirements are given in the following table. In addition, wage rate in Apple State is $2 and that in Banana State is $3. If two states agree to trade goods freely, which product(s) will Apple State produce? 0 0 0 0 Textile Fish Soybean Corn Units of labor required per unit of output Apple State Soybean Textile and Fish and Corn Fish, Soybean and Corn Corn 5 4 3 2 Banana State 2 2 4 4
We are given the following labour per output ratios for the US and Mexico:Chemicals RadiosUS 1 3Mexico 10 5This should be read as; in order to produce 1 unit of the good, for example chemicals, we need 1unit of labour in the US and 10 units of labour in Mexico What is the relative price of chemicals in terms of radios in the US? In Mexico?.Explain your answer
Please show how to solve for question 1, hours (amount of Li) in each country to produce 1 unit of each good.
Apple Republic and Banana Republic have 60,000 workers and 120,000 workers, respectively, and labor is the only factor of production. Unit labor requirements for both countries are given in the table below. Units of labor required per unit of output Banana Apple 4 2 Compute relative autarky price ratios (price of pork relative to that of fish) for both countries, defined as Pp/PF. Pork Fish 4 8
Consider two countries, Home and Foreign and two goods appples and bananas. In the Home country the unit labour requiremrents for apples and bananas are repectively 3 and 2. In the Foreign country the unit labour requirements for apples and bananas are 5 and 1 respectively. The Home country has a labour force of 1200 and the Foreign country has a labour force of 800. Graph the Production Possiblity Frontiers for each of the two countries. What are the prices of apples in terms of bananas in both countries in the absence of trade? Why? Construct the world relative supply function. Suppose that the world relative demand takes the following form: demand for ap- ples/demand for bananas = banana price/apple price. Draw the world relative de- mand curve superimposed on the world relative supply curve. What is the equilibrium relative price of apples under free trade? Describe the pattern of trade. Show that each of the two countries gain from trade. Suppose that instead of 1200…
Consider two competitive economies that have the same quantities of labor and capital (K=L), and the same technology. The economies of the countries are described by the following Cobb–Douglas production functions: North Economy: Y = AK^0.7 L^0.3 South Economy: Y = AK^0.3 L^0.7 If half of workers (L) in North immigrated to South, explain how would total output, marginal produc- tivity of labor, and labor’s share of income in the two economies change?
The following table describes the number of yards of cloth and barrels of wine that can be produced with a week’s worth of labor in England and Portugal. Assume that no other inputs are needed. In England In Portugal Cloth 8 yards 12 yards Wine 2 barrels 6 barrels If there is no trade, what is the price of wine in terms of cloth in England? If there is no trade, what is the price of wine in terms of cloth in Portugal? Suppose each country has 1 million weeks of labor available per year. Draw the production possibilities frontier for each country. Which country has an absolute advantage in the production of which good(s)? Which country has a comparative advantage in the production of which good(s)? If the countries start…
Suppose there are two countries for analyses, the United States and Indonesia. Assume that 2000 man hours are available in the United States and 36000 in Indonesia. The following table provides information on how many man-hours are needed to produce one unit of the same goods. Indonesia United States Cloth 50 3 Machines 100 5 2.2 What is the autarky price of machines in Indonesia and United States?
Consider an economy with two countries and two goods. Unit labor requirement for each product is given in the table below. Domestic Foreign Apple 1 4 Orange 2 1 Available Labor 1,000 7,000 Suppose that Domestic and Foreign can trade apple in exchange for orange at 1-to-1 ratio. Assume that consumers also prefer consuming at one apple for every orange. Calculate the increase in consumption of orange in Foreign after trade opens. Report your answer in 3-decimal precision. Ex: If your answer is 666.54634654674, then 666.546.
Turkey Greece Olives 7. Taxtilea The numbers in the table above represent the number of labor hours it will take to produce one unit of the gren pod. Based on the table above, if complete specialization occurs and Greece has a labor force of 56,000 hours of labor, then after trade begins, k will produce O a. 7,000 units of olives O b. 7,000 units of textiles Oc. 14,000 units of olives or 16,000 units of textiles O d. 8,000 units of olives
part g please
If Kamilah can produce 4 computers or 3 radios during a month's time, while Sally can produce 1 computer or 2 radios during the same period, then it is correct to state that Sally should not be employed. Kamilah has a comparative advantage in producing computers. Kamilah has a comparative advantage in producing both computers and radios. Sally has a comparative advantage in leisure.