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goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces. has a comparative Charisma's opportunity cost of producing 1 pair of jeans is 4 bushels of corn, and Euclidia's opportunity cost of producing 1 pair of jeans is 6 bushels of corn. Therefore, Charisma has a comparative advantage in the production of jeans, and Euclidia advantage in the production of corn. When neither country specializes, the total production of jeans is bushels per week. 24,375 pairs per week, and the total production of corn is 105,000 Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce . Suppose also that Euclidia does not specialize and uses 225,000 hours of labor to produce jeans and pairs of jeans and 675,000 hours of labor to produce corn. It will produce bushels of corn. Suppose Charisma and Euclidia agree to trade with each other, exchanging 14,000 pairs of jeans for 70,000 bushels of corn. In particular, Charisma will export the goods it produces, and Euclidia will export the goods that Charisma does not produce. With trade, Charisma will jeans and corn. Euclidia will jeans and corn. When Charisma specializes and Euclidia still produces the combination of goods using 225,000 hours of labor to produce jeans and 675,000 hours of labor to produce corn, the total production of jeans becomes pairs per week, and the total production of corn becomes bushels per week. Save & Continue

goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces. has a comparative Charisma's opportunity cost of producing 1 pair of jeans is 4 bushels of corn, and Euclidia's opportunity cost of producing 1 pair of jeans is 6 bushels of corn. Therefore, Charisma has a comparative advantage in the production of jeans, and Euclidia advantage in the production of corn. When neither country specializes, the total production of jeans is bushels per week. 24,375 pairs per week, and the total production of corn is 105,000 Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce . Suppose also that Euclidia does not specialize and uses 225,000 hours of labor to produce jeans and pairs of jeans and 675,000 hours of labor to produce corn. It will produce bushels of corn. Suppose Charisma and Euclidia agree to trade with each other, exchanging 14,000 pairs of jeans for 70,000 bushels of corn. In particular, Charisma will export the goods it produces, and Euclidia will export the goods that Charisma does not produce. With trade, Charisma will jeans and corn. Euclidia will jeans and corn. When Charisma specializes and Euclidia still produces the combination of goods using 225,000 hours of labor to produce jeans and 675,000 hours of labor to produce corn, the total production of jeans becomes pairs per week, and the total production of corn becomes bushels per week. Save & Continue

Microeconomics: Private and Public Choice (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter2: Some Tools Of The Economist
Section: Chapter Questions
Problem 7CQ
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goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces. has a comparative Charisma's opportunity cost of producing 1 pair of jeans is 4 bushels of corn, and Euclidia's opportunity cost of producing 1 pair of jeans is 6 bushels of corn. Therefore, Charisma has a comparative advantage in the production of jeans, and Euclidia advantage in the production of corn. When neither country specializes, the total production of jeans is bushels per week. 24,375 pairs per week, and the total production of corn is 105,000 Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce . Suppose also that Euclidia does not specialize and uses 225,000 hours of labor to produce jeans and pairs of jeans and 675,000 hours of labor to produce corn. It will produce bushels of corn. Suppose Charisma and Euclidia agree to trade with each other, exchanging 14,000 pairs of jeans for 70,000 bushels of corn. In particular, Charisma will export the goods it produces, and Euclidia will export the goods that Charisma does not produce. With trade, Charisma will jeans and corn. Euclidia will jeans and corn. When Charisma specializes and Euclidia still produces the combination of goods using 225,000 hours of labor to produce jeans and 675,000 hours of labor to produce corn, the total production of jeans becomes pairs per week, and the total production of corn becomes bushels per week. Save & Continue
Transcribed Image Text:goods, so in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces. has a comparative Charisma's opportunity cost of producing 1 pair of jeans is 4 bushels of corn, and Euclidia's opportunity cost of producing 1 pair of jeans is 6 bushels of corn. Therefore, Charisma has a comparative advantage in the production of jeans, and Euclidia advantage in the production of corn. When neither country specializes, the total production of jeans is bushels per week. 24,375 pairs per week, and the total production of corn is 105,000 Suppose that Charisma completely specializes in the production of the good in which it has a comparative advantage, producing only that good. It will produce . Suppose also that Euclidia does not specialize and uses 225,000 hours of labor to produce jeans and pairs of jeans and 675,000 hours of labor to produce corn. It will produce bushels of corn. Suppose Charisma and Euclidia agree to trade with each other, exchanging 14,000 pairs of jeans for 70,000 bushels of corn. In particular, Charisma will export the goods it produces, and Euclidia will export the goods that Charisma does not produce. With trade, Charisma will jeans and corn. Euclidia will jeans and corn. When Charisma specializes and Euclidia still produces the combination of goods using 225,000 hours of labor to produce jeans and 675,000 hours of labor to produce corn, the total production of jeans becomes pairs per week, and the total production of corn becomes bushels per week. Save & Continue
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