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Economics 11. The following table gives information about labor productivity in two countries, A and B. These countries produce and consume televisions and potato chips,

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Economics 11. The following table gives information about labor productivity in two countries, A and B. These countries produce and consume televisions and potato chips, using (amazingly) only labor as an input to production. Relative productivity in Country A, in this industry (MPLA/MPLB) Telivision Potato a. According to the Ricardian model, which country exports potato chips and why? b. Suppose the price before trade (autarky price) of a television is $100.00 in country A. The autarky price in country A of a bag of potato chips equals $2.50. In autarky equilibrium, what is the opportunity cost of televisions in terms of potato chips in country A? ___________ Please show your calculation. 3.0 2.5

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