RImagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to marketImagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while costs $10,000 in Brazil to produce one automobile and transport it to market.Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make )a. The United States should produce everything, since it can produce both soybeans and automobiles better than Brazil can produce them.Ob. Brazil should specialize and produce only automobiles.The United States should specialize and produce only soybeans.Then the two countries should trade with each other. Brazil will send automobiles to the United States, while the United States sends soybeans to the Brazil.Oc. The United States should specialize and produce only automobiles.Brazil should specialize and produce only soybeans.Then the two countries should trade with each other. The U.S. will send automobiles to Brazil while Brazil sends saybeans to the United States.Od. The United States should prouce both soybeans and automobiles.Brazil should also produce both soybeans and automobiles.Each country should produce all that it needs, then they would not have to trade with each other

The inquiry gave bargains the financial guideline of near advantage, which makes sense of how…

Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to market Imagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while it costs $10,000 in Brazil to produce one automobile and transport it to market. Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make)

Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to market Imagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while it costs $10,000 in Brazil to produce one automobile and transport it to market. Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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