Question

Below is a table showing the daily production numbers for 1 worker in both Mexico and...

Below is a table showing the daily production numbers for 1 worker in both Mexico and Canada. Use these numbers to answer the questions below.

1 worker in Mexico can produce in 1 day 1 worker in Canada can produce in 1 day 10 sodas or 2 pizzas 30 sodas or 3 pizzas

a. What country has the absolute advantage in pizzas? Explain your answer with numbers.

b. What country has the absolute advantage in sodas? Explain your answer with numbers.

c. Determine the opportunity cost of producing 1 pizza in Canada.

d. Determine the opportunity cost of producing 1 pizza in Mexico.

e. Determine the opportunity cost of producing 1 soda in Canada.

f. Determine the opportunity cost of producing 1 soda in Mexico.

g. What country has the comparative advantage in pizzas and, thus, will specialize in pizzas when trading? Explain you answer with numbers.

h. What country has the comparative advantage in sodas and, thus, will specialize in sodas when trading? Explain your answer with numbers.

i. Determine a trade agreement for 1 pizza (price in terms of x number of sodas for 1 pizza) that both countries would benefit from. (Do not give me a range of prices. Just give me one price and one price only.) (Hint: who will be buying and who will be selling pizzas?)

j. Explain (using numbers) how Canada would benefit from your answer to (i) above.

k. Explain (using numbers) how Mexico would benefit from your answer to (i) above.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Below is a table showing the daily production numbers for 1 worker in both Mexico and...
Below is a table showing the daily production numbers for 1 worker in both Mexico and Canada. Use these numbers to answer the questions below. 1 worker in Mexico can produce in 1 day 1 worker in Canada can produce in 1 day 10 sodas or 5 pizzas 24 sodas or 8 pizzas What country has the absolute advantage in pizzas? Explain your answer with numbers. What country has the absolute advantage in sodas? Explain your answer with numbers. Determine...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at most 40 scones per day or at most 2 sweaters per day. Suppose that a Scottish worker can produce at most 20 scones per day or at most 4 sweaters per day. a. Which country has the absolute advantage in the production of each good? b. Find the opportunity cost of producing one sweater in terms of scones for each country. In other words,...
1. In Mexico, a worker can produce 80 bushels of corn or 20 bags of coffee....
1. In Mexico, a worker can produce 80 bushels of corn or 20 bags of coffee. In Costa Rica, a worker can produce 10 bushels of corn or 60 bags of coffee. A. Who has comparative advantage for corn and who has comparative advantage for coffee. 2. suppose before trade occurs, each country has 10 workers and produces the values given in the following table: Country Corn production (bushels) Coffee production (bags) Mexico 400 100 Costa Rica 50 300 Then,...
Assume UK and Russia produce both grapes and cloth. Output in units UK Russia Grapes 45...
Assume UK and Russia produce both grapes and cloth. Output in units UK Russia Grapes 45 65 Cloth 100 45 1) By the theory of absolute advantage which country should specialize in Grapes? Which country should specialize in clothes? Critically comment on the applicability of the theory. (1 mark) 2) Who has a comparative advantage in flowers? Who has a comparative advantage in cloth? Explain your answer by calculation of opportunity costs. (2 mark)
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. Graph the production possibilities frontier of the Canadian and Japanese economies. For Canada, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of...
The tables below illustrate production possibilities for Japan and the US in the production of electronic...
The tables below illustrate production possibilities for Japan and the US in the production of electronic equipment EE) and autos (AU). The following questions are based on these tables and pertain to Absolute and Comparative Advantage. Assume each country has the same amount of inputs and allocated 50% of its inputs to electronic equipment and 50% to autos. US is producing at “C” (48, 18) and Japan at “T” (66, 38) [middle columns]. Answer the following questions regarding Absolute and...
1. You have the following information concerning the production of wheat and cloth in the U.S....
1. You have the following information concerning the production of wheat and cloth in the U.S. and England: Labor hours required to produce 1 unit: England U.S. Wheat 2 1 Cloth 6 5 a) What is the opportunity cost of producing a unit of wheat in England? In the U.S.? [HINT: Your answer must be in the form of units of the other good given up, e.g. “the opportunity cost of 1 more unit of wheat is 7 units of...
1. Below is a table showing the production numbers for a chair factory (where the production...
1. Below is a table showing the production numbers for a chair factory (where the production numbers are based on chairs being produced per day). Workers Total Product (TP) Average Product (AP) Marginal Product (MP) Value Marginal Product (VMP) 0 0 - - - 1 10 2 15 3 70 4 30 5 50 6 40 7 240 8 260 9 30 a) Fill in the missing numbers for the TP, AP and MP columns (round to the nearest chair)...
he table below gives the production alternatives of two nations that are producing tractors and televisions,...
he table below gives the production alternatives of two nations that are producing tractors and televisions, using equal amounts of resources. Tractors Televisons Ritzville 2 8 Clubtown 4 12 Calculate the opportunity cost of producing each of the following: (i) One tractor in Ritzville. (ii) One television in Clubtown. (b) Identify which nation has the comparative advantage in each of the following: (i) Tractor production (ii) Television production (c) Now assume that the productivity of Clubtown’s workers triples for each...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at...
England and Scotland both produce scones and sweaters. Suppose that an English worker can produce at most 40 scones per day or at most 2 sweaters per day. Suppose that a Scottish worker can produce at most 20 scones per day or at most 4 sweaters per day. a. Find the opportunity cost of producing one scone in terms of sweaters for each country. In other words, how many sweaters each country gives up to produce one scone? b. Without...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT