Solve only for 8.4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Solve only for 8.4

Transcribed Image Text:84
Asserme
there are
2 countries peerducing apples and
oranges. Each country has many workers. The table
gives the number of necessary hours to
produce each.
Clabor is the only input).
8.2
Apple
orange
8.1 тние ог
A
8
5
X > 4
o ex
where
False : country A has an absolute advantage
in producing both goods
True or false : country A
in producing apples for any value of x>5.
has comparative advantage
toute
8.3 True or False: There eacists a value of X such that suuts
country A has a strict comparative advantage in
producing both goods

Transcribed Image Text:8.4 if X=Y, trade is not welfare increasing for any country.
7
for this sentence to be true, what is the value of Y?
trade is always good
Weite Y=0 if your
for both countries ".
ir answer is
C
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