Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5.Table 1 shows the maximum output of X and Y that Kenya and Nigeria can produce under constant cost conditions. a.Graph the production possibilities frontiers

5.Table 1 shows the maximum output of X and Y that Kenya and Nigeria can produce under constant cost conditions.

a.Graph the production possibilities frontiers for Kenya and Nigeria in the absence of trade, assume that the Kenya produces and consumes 18000 X and 2000 Y and that Nigeria produces and consumes 8000 X and 1000 Y. Denote this points on each country's production possibilities frontiers.

b.According to the theory of comparative advantage i) Determine the marginal rate of transformation for each country.

ii) Kenya should specialize in the production of which product?

iii) How much the production in Nigeria increase?.

Kenya Nigeria
X 30,000 12000
Y 5000 3000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago