Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 76 units of pretzels or 15 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.45 units of cars for one unit of pretzel. For every 5190 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES. AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 76 units of pretzels or 15 units of cars per labour hour. Suppose Canada follows its comparative advantage in deciding what to produce and trade with Germany at a trade price of 0.45 units of cars for one unit of pretzel. For every 5190 units of the goods that Canada produces and trades with Germany, what are the gains from trade in terms of the other goods? Answer: units (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES. AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
Transcribed Image Text:Germany can produce either 40 units of pretzels or 20 units of cars per labour hour.
Canada can produce either 76 units of pretzels or 15 units of cars per labour hour.
Suppose Canada follows its comparative advantage in deciding what to produce and
trade with Germany at a trade price of 0.45 units of cars for one unit of pretzel. For
every 5190 units of the goods that Canada produces and trades with Germany, what
are the gains from trade in terms of the other goods?
Answer:
units
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO IWO DECIMAL PLACES,
AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
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