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Following table describes the production possibilities of two cities: Red Sweaters per Worker per Hour White Sweaters per Worker per Hour Montreal 3. 3 Toronto nout trade, the price of a white sweater (in terms of red sweaters) in Montreal is 1 ▼ of red sweaters, and in Toronto it is 1 v of red aters. ontreal v has an absolute advantage in the production of red sweaters, and Montreal ▼ has an absolute advantage in the production of te sweaters. oronto v has a comparative advantage in the production of red sweaters, and Montreal ▼ has a comparative advantage in the production of ite sweaters.

Following table describes the production possibilities of two cities: Red Sweaters per Worker per Hour White Sweaters per Worker per Hour Montreal 3. 3 Toronto nout trade, the price of a white sweater (in terms of red sweaters) in Montreal is 1 ▼ of red sweaters, and in Toronto it is 1 v of red aters. ontreal v has an absolute advantage in the production of red sweaters, and Montreal ▼ has an absolute advantage in the production of te sweaters. oronto v has a comparative advantage in the production of red sweaters, and Montreal ▼ has a comparative advantage in the production of ite sweaters.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Course dterm 1 2.Q 2 The following table describes the production possibilities of two cities: Red Sweaters per Worker per Hour White Sweaters per Worker per Hour Montreal 3. 3 Toronto 2 1. Without trade, the price of a white sweater (in terms of red sweaters) in Montreal is 1 v of red sweaters, and in Toronto it is 1 v of red sweaters. Montreal ▼ has an absolute advantage in the production of red sweaters, and Montreal ▼ has an absolute advantage in the production of white sweaters. Toronto has a comparative advantage in the production of red sweaters, and Montreal v has a comparative advantage in the production of white sweaters. sweaters. v sweaters, and Montreal will export white If the cities trade with each other, Toronto will export red The price of white sweaters can be expressed in terms of red sweaters. The highest price at which white sweaters can be traded that would make both - red sweaters per white sweater, and the lowest price that makes both cities better off is v red sweaters per white cities better off is sweater. Save & Continue
Transcribed Image Text:Course dterm 1 2.Q 2 The following table describes the production possibilities of two cities: Red Sweaters per Worker per Hour White Sweaters per Worker per Hour Montreal 3. 3 Toronto 2 1. Without trade, the price of a white sweater (in terms of red sweaters) in Montreal is 1 v of red sweaters, and in Toronto it is 1 v of red sweaters. Montreal ▼ has an absolute advantage in the production of red sweaters, and Montreal ▼ has an absolute advantage in the production of white sweaters. Toronto has a comparative advantage in the production of red sweaters, and Montreal v has a comparative advantage in the production of white sweaters. sweaters. v sweaters, and Montreal will export white If the cities trade with each other, Toronto will export red The price of white sweaters can be expressed in terms of red sweaters. The highest price at which white sweaters can be traded that would make both - red sweaters per white sweater, and the lowest price that makes both cities better off is v red sweaters per white cities better off is sweater. Save & Continue
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