What are the opportunity costs of coffee for h and f

Assignment Help Business Economics

Reference no: EM13215016

Suppose a Ricardian Model of two-country, H and F, and two-product, coffee and wheat, and one factor, labor, world with the following PPFs. Assume that the total amounts of labor available for H and F both are 100 units.

H country W=50 C=100
F country W=100 C=50

Assuming no barriers in trade, construct a relative supply curve for coffee for this world.
If the relative demand for C is given that: . Answer the followings:
a. What are the opportunity costs of coffee for H and F?
b. Construct the world relative supply curve of coffee.
c. Graph the relative demand curve along with the relative supply curve.
d. What is the equilibrium relative price of coffee?
e. What is the relative wage for H?

Reference no: EM13215016

Questions Cloud

Compute the missing amounts and prepare firms july report : a. Direct material is added at the beginning of the production process, and conversion activity occurs uniformly throughout the process.b. The company uses weighted-average process costing.c. The July 1 work in process was 30 percent complete as to c..

Explain what is the firm''s weighted average cost of capital : Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

Explain portfolio return and standard deviation : Security A has an expected return of 8%t and a standard deviation of 20%. Security B has an expected return of 10% and a standard deviation of 50%.

Draw the real labor demand curve for each country : Draw the real labor demand curve for each country.

What are the opportunity costs of coffee for h and f : What are the opportunity costs of coffee for H and F?

Exercise promotion and public relations strategy : There are many ways to exercise promotion and public relations strategy. One way is to use humor to promote your product. Discuss a promotion that uses humor to achieve its goals.

Good marketing tool and why : How effective is Wal-Mart's website in making it each to purchase goods? Elaborate on this. They are moving into service areas such as Hip to Site services:

Calculate the elasticity : Suppose that when the price of coffee increases by 40%, the percentage change in quantity demanded by consumer is reduced by 10%. Calculate the elasticity.

What is the after-tax cost of debt : Jiminy's Cricket Farm issued a 30-year, 6 percent, semiannual bond 8 years ago. The bond currently sells for 97 percent of its face value. What is the after-tax cost of debt if the company's tax rate is 32 percent?

User Account

All Pages