PEood = 6*w + 4*r PBeyerage = 4*w + 4*r PERod = $24 PBeverage = $20 *w + 4*r = 4*w+4*r 32 = $24 countries operate in autarky – no trade. Complete the table to determine conditions within each country. Autarky w*F= r*F = w/r = (K/L)Food = (K/L)Beverage Food per w Beverage per w = Food per r= Beverage per r= 10
PEood = 6*w + 4*r PBeyerage = 4*w + 4*r PERod = $24 PBeverage = $20 *w + 4*r = 4*w+4*r 32 = $24 countries operate in autarky – no trade. Complete the table to determine conditions within each country. Autarky w*F= r*F = w/r = (K/L)Food = (K/L)Beverage Food per w Beverage per w = Food per r= Beverage per r= 10
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:Consider 2 Countries, Domestic and Foreign. Both countries have the same production technology. They differ in their endowment of
L and K.
Foreign has the following situation:
PFood = 6*w + 4*r
PBeyerage = 4*w + 4*r
PFood = $24
Domestic has the following situation:
= 6*w + 4*r
PEood
PBeverage
PEeod = $32
PBeverage = $24
= 4*w + 4*r
PBeverage
= $20
1.
Initially, the countries operate in autarky – no trade. Complete the table to determine conditions within each country.
Autarky
w*D =
w*F
r*D =
r*F
w/r =
w/r =
(K/L)Food =
(K/L)Feed
(K/L)Beverage
(K/L)Beverage
Food per w =
Food per w =
Beverage per w =
Beverage per w =
Food per r=
Food
per r =
Beverage perr=
Beverage perr=
1.
1.
10
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