Comparative advantage in wheat, Macroeconomics

Assignment Help:

In The No-Trade Equilibrium
Stormlands:
WageL = 24 WageW = ?
MPLL = 4 MPLW = ?
PL = ? PW = 4

Reach:
Wage*L = ? Wage*W = 6
MPL*L = ? MPL*W = 1
P*L = 3 P*W = ?

(a) Which country has a comparative advantage in wheat and why?

(b) Suppose that in the trade equilibrium PL/PW = 1.2. Which good which each country export?

(c) For each country, calculate the real wage in terms of lumber and in terms of wheat.

(d) For each country, compare the values you obtained in part (d) with the real wage in terms of either good in the no-trade equilibrium. Do White Walkers in each country gain from trade?


Related Discussions:- Comparative advantage in wheat

Economics, Ask question #Minimum 100 words accepted I need help with homew...

Ask question #Minimum 100 words accepted I need help with homewok

Explain production externality, Bob's Bee is a small boutique honey manufac...

Bob's Bee is a small boutique honey manufacturer in Texas.  Bob's neighbor is Jon's James.  The more honey Bob produces, the more jam Jon is able to produce; that is, there is

What is probability the time between two successive calls, A one-car taxi c...

A one-car taxi company receives an average of 18 calls per day. The receptionist takes down details of the requested journey and relays them to the driver by radio. Each passenger'

FEDERAL BUDGET, HOW TO GET THE REVENUES AND EXPENDITURES AS A PERCENT OF GD...

HOW TO GET THE REVENUES AND EXPENDITURES AS A PERCENT OF GDP?

Wal-marts supply chain management, Explain the impact of Wal-Mart's supply ...

Explain the impact of Wal-Mart's supply chain management on its total product, marginal product, and average product curves. What has been the effect on its retail prices?

Market structures, illustrate and discuss the implications of variou market...

illustrate and discuss the implications of variou market structures (competitive and noncompetitive) for price determination

Economic growth cyclic fluctuations, Economic Growth Cyclic Fluctuations ...

Economic Growth Cyclic Fluctuations At this stage, it is useful for us to understand the difference between economic growth and cyclical fluctuations. Economic Growth Econo

Clasical model., if we impose any rule and regulation on clasical model lik...

if we impose any rule and regulation on clasical model like not expoit polutionso what is effect on factor of clasical model

Farmer grows wheat and sells, A farmer grows wheat and sells it to a miller...

A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bre

Write Your Message!

Captcha
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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd