Week 2 Critical

A | no(prenominal) of histrions required to invoke| plain| One cosmetic surgery cable car| One short short ton of scrap| foundation forces| 0.25| 0.1| lacquer| 0.25| 0.2| B No. of workers in both countries = $ snow fundamental each So, if the States prepares except Car, they lead produce cytosine/0.25 = four hundred trillion cars If ground forces produces entirely caryopsis, they will produce 100/0.1 = mebibyte million ton caryopsis If lacquer produces only Car, they will produce 100/0.25 = 400 million cars If Japan produces only grain, they will produce 100/0.2 = euchre million ton grain C For regular army: probability m superstartary value of car = 1000/400 = 2.5 ton grain probability exist of grain = 400/1000 = 0.4 car For Japan: prospect cost of car = euchre/400 = 1.25 ton grain fortune cost of grain = 400/500 = 0.8 car D Neither ground has absolute payoff in producing cars. the States has an absolute advantage i n producing grain. E Japan has a comparative advantage in car producing as Japan has lower opportunity cost in producing car. USA has a comparative advantage in producing grain because of lower opportunity cost in producing grain. F Country| Car (in million)| Grain (in million ton)| USA| cc| 500| Japan| 200| 250| Total| 400| 750| G If there is no take, both nation produce car as salutary as grain.

In USA, if 1 worker producing car is engaged to produce grain, USA will have 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, J apan will slip 5 scores grain and gain 4 c! ars per annum. So, for USA, 4 car = 10 ton grain For Japan, 4 car = 5 ton grain If USA and Japan control to trade and trade agreement is 4 cars = 8 tons of grain, both countries are better off. The USA will produce only grain and trade grain for car. Japan will produce only cars and trade car for grain. So, as per this trade agreement, 1 labor in USA produces 10 ton grain which will get USA 4 cars and 2 ton grain. 1 labor in Japan produces 4 cars and trade this with 8 ton grain. If they produced grain,...If you unavoidableness to get a unspoiled essay, order it on our website: OrderCustomPaper.com

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