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Refer to the following table when answering the following question East and West Fish and Chip Production West East Labor Force 100 375 200 kilos |100 kilos Fish Production per Person 60 kilos Chip Production per Person 20 kilos Which of the following statements is true?

Refer to the following table when answering the following question East and West Fish and Chip Production West East Labor Force 100 375 200 kilos |100 kilos Fish Production per Person 60 kilos Chip Production per Person 20 kilos Which of the following statements is true?

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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Refer to the following table when answering the following question. East and West Fish and Chip Production West East Labor Force 100 375 Fish Production per Person 200 kilos 60 kilos Chip Production per Person 100 kilos 20 kilos Which of the following statements is true?
Transcribed Image Text:Refer to the following table when answering the following question. East and West Fish and Chip Production West East Labor Force 100 375 Fish Production per Person 200 kilos 60 kilos Chip Production per Person 100 kilos 20 kilos Which of the following statements is true?
> > Question 10 Assume, for the time being, that complete specialization is possible. Then, with free trade and using the approach we used in class, the price of fish in terms of chips is (Round your answer to two decimal points.) 0.6 Question 11 Based on your answer to the previous question, is complete specialization, in fact, possible? O Yes. O No. Question 12 Next, assume that West maintains a labor force of 90. East's labor force, in contrast, drops to 250. Select the country (or countries) that specialize completely (i.e., they produce a single good). (Hint: Check if global supply equals global demand for fish and chips. Once you've done this, you can determine if complete specialization is possible!) East West Question 13 Assuming again that West's labor force has 90 workers and East's has 250 workers, what is the market- clearing world price of fish in terms of chips when both countries open up to free trade?
Transcribed Image Text:> > Question 10 Assume, for the time being, that complete specialization is possible. Then, with free trade and using the approach we used in class, the price of fish in terms of chips is (Round your answer to two decimal points.) 0.6 Question 11 Based on your answer to the previous question, is complete specialization, in fact, possible? O Yes. O No. Question 12 Next, assume that West maintains a labor force of 90. East's labor force, in contrast, drops to 250. Select the country (or countries) that specialize completely (i.e., they produce a single good). (Hint: Check if global supply equals global demand for fish and chips. Once you've done this, you can determine if complete specialization is possible!) East West Question 13 Assuming again that West's labor force has 90 workers and East's has 250 workers, what is the market- clearing world price of fish in terms of chips when both countries open up to free trade?
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