Suppose that we need 30 hours of direct labor as well as a machine whose direct labor equivalent is 120 hours to produce one pair of shoes. We need 110 hours of direct labor as well as a machine whose direct labor equivalent is 190 hours to produce one T-shirt. Then what may be the exchange ratio in the market between the pair of shoes and one T-shirt?
Suppose that we need 30 hours of direct labor as well as a machine whose direct labor equivalent is 120 hours to produce one pair of shoes. We need 110 hours of direct labor as well as a machine whose direct labor equivalent is 190 hours to produce one T-shirt. Then what may be the exchange ratio in the market between the pair of shoes and one T-shirt?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose that we need 30 hours of direct labor as well as a machine whose direct labor equivalent is 120 hours to produce one pair of shoes. We need 110 hours of direct labor as well as a machine whose direct labor equivalent is 190 hours to produce one T-shirt. Then what may be the exchange ratio in the market between the pair of shoes and one T-shirt?
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