User Account

All Pages

What is the relative price of apples before trade

Assignment Help Business Economics
Reference no: EM133082359

Assume the Ricardian model where the marginal product of labor in the home country is 3 in the apple industry and 2 in the beer industry. The home country has 10 workers. Home country consumption is 10 apples and 15 beers before trade and 12 apples and 16 beers after trade. The relative price of apples is 2 after trade.

a. What is the relative price of apples before trade?

b. What is the slope of the production function, where apples are on the vertical axis and beer on the horizontal axis?

c. Which good will the home country export? What is the quantity of its exports?

Reference no: EM133082359

Questions Cloud

Analyse the impact of the organisation on local economies : (1) Analyse the impact of the organisation on local economies where its offices and production sites are located.
Compare canadian economy with the economy of usa : Compare Canadian economy with the economy of USA and give merits and demerits.
Best characterized by value creation : Suppose you observed a hostile takeover and learned that the aftermath of the deal included plant closings, layoffs, and reduced compensation for some remaining
Monopolistic behaviour to the expropriation problem : What if the government needs to purchase a single, large piece of property in order to provide a public good, such as a subway station?
What is the relative price of apples before trade : Assume the Ricardian model where the marginal product of labor in the home country is 3 in the apple industry and 2 in the beer industry.
Why are professional athletes paid so much : Why are professional athletes paid so much? Discuss. Include economic concepts/terminology (marginal revenue product?) in your posting.?
What is the percentage increase in high school student : What is the percentage increase in high school student passing rates when they are bribed to get good grades?
How do taxes affect businesses and consumers : How do taxes affect businesses and consumers? Short answer please.
Make a chart to compare diesel and gasoline : The consultants at Hayward Management Consulting Group are discussing the factors that explain the cost of maintenance for a fleet of Buses at the Buena School

Reviews

Write a Review

Business Economics Questions & Answers

  Run the script to create tables and data

Run the script to create tables and data. You should not receive errors. There may be a few warnings, but that is okay.

  Treasury sells bonds

When the US. Treasury sells bonds, the money supply does not increase, while when the Central Bank sells bonds, the money supply contracts. Explain why?

  Investment affect the marginal physical product of labor

How does capital (physical) investment affect the marginal physical product of labor?

  Subprime mortgage crisis

Due to the most recent Subprime mortgage crisis, most of the banks are uncertain about deposit outflows. Given everything else unchanged

  Eliminating the tax on capital gains is to index gains

One way to eliminating the tax on capital gains is to index gains for inflation. According to recent U.S. government statistics, $1 in 1972 had the purchasing power of about $3 in 2012. What would be the effect of adjusting capital gains for inflatio..

  Has lost heat and water in his apartment

Terry, the tenant, has lost heat and water in his apartment. He called Larry the landlord a week ago, but Larry hasn't repaired anything.

  Policies break with previous economic approaches

Describe the central philosophical assumptions behind Reaganomics. What were the key policies by which it was implemented? To what extent were these policies a break with previous economic approaches?

  American dream like the mythical phoenix

Is the American Dream like the mythical Phoenix rising from the ashes? What are your thoughts?

  Circulating paper dollar bills instead of dollar coins

Explain who ultimately bears the higher cost entailed in circulating paper dollar bills instead of dollar coins?

  Equilibrium value of consumption and investment

Solve for equilibrium real output and also solve for the equilibrium interest rate.

  Calculate the expected payoff for a long position

Calculate the expected payoff for a long position in the option whose payoff has the highest volatility (standard deviation)

  Deposit a constant percentage of the annual salary

A young engineer's starting salary is $55,000. The engineer expects annual raises of 2%. The engineer will deposit a constant percentage of the annual salary

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