Determine the price of white socks

Assignment Help International Economics

Reference no: EM1375153

The following table explaines the production possibilities of 2-cities in the nation of Baseball:

Production per worker per hour:
Red socks White socks
-------------------------------------------------------------------------------
Boston 3 3
Chicago 2 1

a) Without trade, determine the price of white socks in terms of red socks in Boston? What is the price in Chicago?

b) Which city has an absolute advantage in the production of each color sock? Which city has a comparative advantage in the production of each
color sock?

c) If the cities trade with each other, which color sock will each export?

d) What is the range of prices at which trade can occur?

Reference no: EM1375153

Questions Cloud

Illustrate what is its final kinetic energy : A proton is initially at rest at a point where potential is 501 V. Sometime later proton is at a point where potential is 218 V. If no force or than electrostatic force acts on proton, illustrate what is its final kinetic energy.

Calculating the opportunity cost : Assume that the Kiribati can manufacture 1000 tons of breadfruit or 500 tons of fish, and that Tuvalu can manufacture 750 tons of breadfruit or 1875 tons of fish.

Explain how many seats should super discount overbook flight : Airline knows from past history that an average of 25 customers cancels ir reservation or do not Show for flight. Revenue from a ticket flight is $125. By explain how many seats should super discount overbook flight.

Explain how that organization maintains competitive pros : Explain how that organization maintains or attempts to maintain competitive pros. Illustrate what do they do well. Illustrate what improvements could they make? Support your answer.

Determine the price of white socks : The following table explaines the production possibilities of 2-cities in the nation of Boston, determine the price of white socks in terms of red socks in Boston?

Express in detail why you believe vertical integration : Locate an organization that has used vertical integration as a supply chain strategy. Express in detail why you believe vertical integration was/was not appropriate strategy.

Benefits of free trade : Economists are in almost universal contract that Free Trade is good for all nations. Explain why are they in such universal contract?

Determine process velocity : Mop and Broom Manufacturing approximate that it takes 4½ hours for each broom to be produced, from raw materials to final product. An evaluation of process reveals that amount of time spent working on product is 3 hours. Determine process velocity..

Explain why is it so important for businesses to understand : Illustrate what is meant by moment of truth in service design. Explain why is it so important for businesses to understand this concept.

User Account

All Pages