Productive efficiency, Suppose that the United States can

Productive efficiency

Assignment Help International Economics

Reference no: EM1375266

I have come across this type of scenario several times in college and in personal business ventures. Understanding these scenarios helps us understand a small piece of microeconomic strategy.

Suppose that the United States can manufacture Toyotas at the cost of $18,000 per car and Chevrolets at $16,000 per car. In Japan, Toyotas can be manufactured at 1,000,000 yen and Chevrolets at 500,000 yen. In terms of Chevrolets what is the opportunity cost of producing Toyotas in each country? Who has the comparative advantage in producing Chevrolets? Suppose Americans buy 500,000 Chevrolets and 300,000 Toyotas each year and the Japanese purchase far fewer of each. Using productive efficiency as the guide, which country should produce Chevrolets and which should produce Toyotas?

Reference no: EM1375266

Questions Cloud

Computing absolute advantage : Still remaining within the Ricardian framework, Suppose that the Canada has one hundred units of labor available for production while Mexico has two hundred units of labor and both nations produce corn and wheat.

Explain how much power relative to this decision : Explain how much power relative to this decision did Mary, Jack also the president of Standard Software possess also illustrate what type of power was it.

Explain how would carlyle define its business strategy : Explain how would Carlyle define its business strategy. Illustrate what present conditions in Carlyle's external environment favour its success. Illustrate what are the keys to Carlyle's future strategic success given its impressive also stiffer comp..

Computing the opportunity costs : You are a producing firms of brooms and mops. In order to cut cost, you are considering about shifting production of some of item to Mexico.

Productive efficiency : Suppose that the United States can manufacture Toyotas at the cost of $18,000 per car and Chevrolets at $16,000 per car. In Japan, Toyotas can be manufactured at 1,000,000 yen and Chevrolets at 500,000 yen.

Compute the upper also lower standard control limits : the Chair sampled 500 final grades from last yr for each instructor also computed the number of failures per instructor as 13, 11, and 0 also 16 respectively. Compute the upper also lower standard control limits for this chart.

Compute the probability of four or more students : Compute the probability of four or more students being in line or being served. Before a test the arrival of students increases to six per hour on the average. Illustrate what does this do to the average length of the line.

What can you do to overcome some of these limitations : Make sure to examine the threats which you feel are present in the study which you designed. As a researcher, illustrate what can you do to overcome some of these limitations.

Governments intervene in international trade : Discuss what is the gain for a country that results from specialization in the manufacturing of items for which there is a comparative advantage?

User Account

All Pages