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No-Trade Situation Price per unit Output Wage Manufacturing Agriculture $10 100 units $10 100 units $10/hour $10/hour Employment 50 hours 70 hours Return to
No-Trade Situation Price per unit Output Wage Manufacturing Agriculture $10 100 units $10 100 units $10/hour $10/hour Employment 50 hours 70 hours Return to capital $10/hour 0 Amount of capital 50 units 0 Return to land NA $5/acre Amount of land NA 60 acres Trade Situation Price per unit $12 $10 Output 120 units 100 units Wage $12/hour $12/hour Employment 70 hours 50 hours Return to capital ??/unit NA Amount of capital 50 units NA Return to land NA ??/acre Amount of land NA 60 acres According to the table, what is the return to capital after trade occurs?
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
