Question
Assume that a country Owasia operates in the immobile factor model model and is in autarky. It produces candies and toys, employing 30 people
Assume that a country Owasia operates in the immobile factor model model and is in autarky. It produces candies and toys, employing 30 people in the former industry and 10 in the latter. Each worker works for nine hours each day. The unit labor requirements in the two industries are 6 hours per toy and 3 hours per candy. Calculate the autarky price ratio, PT/PC, in Owasia. O 2 candies per toy O 1/2 candy per toy O 3 candies per toy O 6 candies per toy O 1/6 candy per toy
Step by Step Solution
3.37 Rating (150 Votes )
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below The correct answer is 6 candies per toy ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
International Economics
Authors: Dennis Appleyard, Alfred Field
8th Edition
978-0078021671, 0078021677
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App