Consider the table below for the neighboring nations of

Reference no: EM13377652

Consider the table below for the neighboring nations of Northland and West Coast. The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced. Assume that the opportunity costs of producing these goods are constant in both nations.

Product Northland West Coast

Pastries (per hour) 50,000 100,000

Sandwiches (per hour) 25,000 200,000

Based on the data provided, what is the opportunity cost of producing pastries and sandwiches in Northland?

What is the opportunity cost of producing pastries and sandwiches in West Coast?

Which nation has a comparative advantage in producing pastries and which nation has a comparative advantage in producing sandwiches?

Suppose the two nations choose to specialize in producing the goods for which both have a comparative advantage. Both agree to trade at a rate of exchange of one pastry for one sandwich. At this rate of exchange, what are the maximum numbers of pastries and sandwiches that both could agree to trade?

Reference no: EM13377652

Questions Cloud

Assume you are hired as a consultant by barks industries a : assume you are hired as a consultant by barks industries a company in a monopolistically competitive industry. how

Starting with the estimated demand function for chevrolets : starting with the estimated demand function for chevrolets given in problem 2 assume that the average value of the

If elasticity is -2 price is 10 and marginal cost is 8 : if elasticity is -2 price is 10 and marginal cost is 8 should you raise or lower price?lower price. since demand

Suppose you have 10 indivduals with vales 1 2 3 4 5 6 7 8 9 : suppose you have 10 indivduals with vales 1 2 3 4 5 6 7 8 9 10. . our marginal cost of production is 2.50. what is the

Consider the table below for the neighboring nations of : consider the table below for the neighboring nations of northland and west coast. the table lists the maximum feasible

1 discuss the current economic situation in the us as : 1. discuss the current economic situation in the u.s. as compared to five 5 years ago. include interest rates

You are given the following equation for the real demand : you are given the following equation for the real demand for money mpd .25y - 50 ra. compute the demand for money

Consider an economy in which taxes planned investments : consider an economy in which taxes planned investments government spending on goods and serves and net exports are

Which of the following public policies restricts : which of the following public policies restricts competition?a. licensingb. patentsc. import quotasd. all of the

User Account

All Pages