Determine he combined production of fiber optic cable , Microeconomics

Assignment Help:

Graph the following example and answer the questions: The United States and Japan only produce two goods.  They have the same fixed resources and they are equally efficient, and both countries have constant opportunity costs between the two goods.  In one month, the United States can make 200,000 units of fiber optic cable or 600,000 flash drives.  Japan can produce 300,000 units of fiber optic cable or 600,000 flash drives. 

  • Who has the Absolute Advantage in the production of Flash Drives?
  • Who has the Absolute Advantage in the production of Fiber Optic Cable?
  • What is the opportunity cost for the USA for Flash Drives?
  • What is the opportunity cost for the USA for Fiber Optic Cable?
  • What is the opportunity cost for Japan for Flash Drives?
  • What is the opportunity cost for Japan for Fiber Optic Cable?

 

**If both countries devote 50% of their resources to the production of both goods...

  • ...what would the USA's production of Flash Drives be?
  • ...what would the USA's production of Fiber Optic Cable be?
  • ...what would Japan's production of Flash Drives be?
  • ...what would Japan's production of Fiber Optic Cable be?
  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?

 

**If the two nations each specialize where they have a comparative advantage...

  • ...what would the USA's produce, and how much?
  • ...what would Japan's produce and how much?
  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?

 

**Compared to when each nation was producing both goods...

  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?
  • Would these nations enter a trade agreement?
  • Why or why not?

Related Discussions:- Determine he combined production of fiber optic cable

Calculate the keynesian multiplier and short run equilibrium, The governmen...

The government notices that there is an output gap and decides to increase government spending with a stimulus package of $4 trillion in hopes that it will spur growth and stop une

Fixed input and variable input, Fixed input and variable input: A fixe...

Fixed input and variable input: A fixed input is that input whose quantity cannot be varied in the short-run when demand conditions require an increase or a decrease in produc

Environmental effects of the use of robots in factories, A 1500 word resear...

A 1500 word research paper on the economic, social or environmental effects of the widespread use of robots in factories (this meets Learning Outcome 4)

State property regime , State Property Regime Normal 0 ...

State Property Regime Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Negative profit, Negative profit  FC + VC > R(q) MR > MC ...

Negative profit  FC + VC > R(q) MR > MC    Indicates higher profit at the higher output - Question: Why is profit negative when the output is zero? - Outp

Labor , #questThe demand for and supply of labour in a certain industry are...

#questThe demand for and supply of labour in a certain industry are given by the equations Nd = 400 - 2w Ns = 240 + 2w Where Nd ( is the number of workers employers want to hire

Explain about the integrability problem, Explain about the integrability pr...

Explain about the integrability problem. The Integrability Problem: Provide a system of demand functions x(p, m). Is there essentially a utility function by which such deman

Decreasing marginal returns and negative marginal returns, What is the diff...

What is the difference between decreasing marginal returns and negative marginal returns?

Distinction between cost and expenditure, Distinction Between Cost and Expe...

Distinction Between Cost and Expenditure As has already been defined, cost is the money equivalent of material and human resources needed to produce a good or a service. Expen

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