Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Country A has 55,000 units of labor and can produce 2 goods, manufactures and food. A's producers take 5 units of labor to produce one

Country A has 55,000 units of labor and can produce 2 goods, manufactures and food. A's producers take 5 units of labor to produce one unit of manufactures and 2 units of labor to produce one unit of food. Country B has 33000 units of labor and takes 3 units to produce one unit of manufactures and 5 units to produce one unit of food. What is price of manufactures in terms of food at which A and B would respectively supply manufactures? What would B export in Adam Smith's world? What is the amount it could supply?

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

Consumer Behaviour

Authors: Evans, Martin Evans

2nd Edition

0470994657, 9780470994658

Students also viewed these Economics questions

Question

Convert the Babylonian number into a Hindu-Arabic number.

Answered: 1 week ago

Question

ABC JIT KPI

Answered: 1 week ago

Question

4. What means will you use to achieve these values?

Answered: 1 week ago

Question

3. What values would you say are your core values?

Answered: 1 week ago