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content area Part 1 Suppose TaiwanTaiwan and CanadaCanada produce only cell phones and digital music players. Assume that each country uses only labor to produce
content area Part 1 Suppose TaiwanTaiwan and CanadaCanada produce only cell phones and digital music players. Assume that each country uses only labor to produce each good, and that the cell phones and digital music players made in TaiwanTaiwan and CanadaCanada are exactly alike. The table below shows how much each country can produce of each good with one hour of labor: Part 2 Output per Hour of Labor Cell Phones Digital Music Players TaiwanTaiwan 2121 1212 CanadaCanada 33 99 Part 3 Suppose that TaiwanTaiwan and CanadaCanada do not trade with each other. Each has 100100 hours of labor with which to produce cell phones and digital music players, and the countries are currently producing amounts of each good shown in the table below: Part 4 Consumption with 100100 Hours of Labor Cell Phones Digital Music Players TaiwanTaiwan 1 comma 8901,890 nbsp 120 120 CanadaCanada nbsp 120 120 nbsp 540 540 Part 5 Assume now that each country specializes in producing that good in which it has a comparative advantage. Further, assume for simplicity that one cell phone can be traded for one digital music player. Part 6 If TaiwanTaiwan trades nbsp 120 120 cell phones for nbsp
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