User Account

All Pages

Construct the production-possibilities frontier

Assignment Help Business Economics
Reference no: EM132649388

The following table shows the output of textile and auto one unit of labor can produce in the U.K. and the U.S.:

Uk : Textiles - 16 Autos -4

Us : Textiles - 6 Autos - 3

  • Which country has an absolute advantage in textiles and which country has an absolute advantage in autos? 
  • What is the autarky price ratio of autos relative to textiles in each country? 
  • Which country has a comparative advantage in textiles and which country has a comparative advantage in autos?
  • Which product should each country export?
  • Suppose the United States has 300 units of labor available. Construct the production-possibilities frontier (PPF) and identify the optimal autarky equilibrium (using an indifference curve) for the United States. 
  • Suppose the international price is set at 1 auto:3 units of textile and the U.S. decides to completely specialize at producing the product in which it has a comparative advantage. How would the above graph change? Use the graph to show the gains from trade and the export and import quantities. For each unit of export good, how much does the U.S. gain (measured in terms of the other good)?
  • Discussion: At what level of international price ratio will all the benefits from trade accrue to the United States?

Reference no: EM132649388

Questions Cloud

What the total costs remaining in work in process on may : Using the weighted-average method of process costing, What the total costs remaining in work in process on May 31 are closest to
Pragmatically unmarked speech styles : Why does the target character use that style as their unmarked style in that relationship - If a character deviates from that unmarked speech style
What is the market power of the airline industry in the us : What is the market power of the airline industry in the US?
How much must Henry report : During the year, Henry received a $10,000 distribution from HJ. How much must Henry report on his Form 1040 from HJ for the tax year
Construct the production-possibilities frontier : The following table shows the output of textile and auto one unit of labor can produce in the U.K. and the U.S.:
How many units should the company account for in may : How many units should the company account for in May? In May 2020, The Hobbit has a beginning work in process inventory of 5,500 units that were 100%
Find what is cost of ending inventory at the end of january : What is the cost of the beginning inventory transferred out in January? What is the cost of ending inventory at the end of January?
Draw a production possibilities frontier depicting situation : Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop.
Identify the relevant tax issues for Tammy and Willy : Tammy and Willy own 40% of the stock of Roadrunner, an S corporation. Identify the relevant tax issues for Tammy and Willy

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd