Suppose Malaydia's production possibilities include a maximum of 150 units of rice and 250 units of lumber, and Canada's production possibilities include a maximum of 300 units of rice or 160 units of lumber. Then suppose each country initially allocates 50% of it's labor to producing each product. a. Total production by the 2 countries equal of rice and lumber? b. Now suppose Malaysia increases the labor it allocates to kumber by 10%. Its lumber production rise by and it's rice production falls by. c. If Canada reallocates it's labor to increase its rice production by exactly the amount that Malaydia's rice production fell, by how much must it's lumber production fall? d. State the combines effects on total production of the reallocations in part b and c. Total production of rice changes by Total production of lumber changes by _____

Suppose Malaydia's production possibilities include a maximum of 150 units of rice and 250 units of lumber, and Canada's production possibilities include a maximum of 300 units of rice or 160 units of lumber. Then suppose each country initially allocates 50% of it's labor to producing each product. a. Total production by the 2 countries equal of rice and lumber? b. Now suppose Malaysia increases the labor it allocates to kumber by 10%. Its lumber production rise by and it's rice production falls by. c. If Canada reallocates it's labor to increase its rice production by exactly the amount that Malaydia's rice production fell, by how much must it's lumber production fall? d. State the combines effects on total production of the reallocations in part b and c. Total production of rice changes by Total production of lumber changes by _____

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose Malaydia's production possibilities include a maximum of 150 units of rice and 250 units of
lumber, and Canada's production possibilities include a maximum of 300 units of rice or 160 units of
lumber. Then suppose each country initially allocates 50% of it's labor to producing each product. a. Total
produxtion by the 2 countries equal of rice and lumber? b. Now suppose Malaysia increases the labor it
allocates to kumber by 10%. Its lumber production rise by and it's rice production falls by. C.
If Canada reallocates it's labor to increase its rice production by exactly the amount that Malaydia's rice
production fell, by how much must it's lumber production fall? d. State the combines effects on total
production of the reallocations in part b and c. Total production of rice changes by Total production
of lumber changes by ____.

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Step 4: c. Determine the labor allocated in production rice in Canada

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