Construct the world relative supply curve

Reference no: EM131135076

Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1.

a. Graph Foreign's production possibility frontier.

b. Construct the world relative supply curve.

Problem 1

Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2.

a. Graph Home's production possibility frontier.

b. What is the opportunity cost of apples in terms of bananas?

c. In the absence of trade, what would the price of apples in terms of bananas be? Why?

Reference no: EM131135076

Questions Cloud

Companies whose founders remained in top leadership position : Do (did) any of these individuals demonstrate unusual abilities to manage large companies when they started them?

Explain these differences using the gravity model : In addition, Mexico does much more trade relative to its GDP. Explain these differences using the gravity model.

How do you define professionalism : What is your role as a health care team member - how do you define professionalism and how does professional responsibility influence your work?

Image and identify several of the individual elements : Choose a famous work of art. Look closely at the image and identify several of the individual elements within the image. Imagine the removal of one of these elements. How would the meaning of the image change? Remove a second. With two elements m..

Construct the world relative supply curve : Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1.

Select and research a group- african-american : Use a minimum of 4 credible sources* to gather, examine, and compare relevant facts, figures, statistics, and research results for the group you selected.

Determine the maximum bending stress : Determine the maximum bending stress. Neglect the weight of the beam - Find the extreme fibre stresses at the middle sectionspan.

Video clips from recent presidential debates or speeches : Find two examples of video clips from recent presidential debates or speeches. The clips should must come from more than one political party. Feel free to think outside of the Democratic and Republican parties.

Show that both home and foreign gain from trade : Now suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples.

User Account

All Pages