Question
Question 3 Consider two countries, the Portugal and Spain, that each produce only two goods, ham and cod fish. Each country is endowed with a
Question 3
Consider two countries, the Portugal and Spain, that each produce only two goods, ham and cod fish. Each country is endowed with a specific amount of labor and has a unit labor requirement for producing each product. The figure below depicts each country's PPF. PPFP is Portugal's PPF, and PPFS is Spain's PPF.
Part (i): Suppose that Portugal has 90 available units of labor each week. What is Portugal's unit labor requirement for producing units of ham? Explain your answer.
Part (ii): Suppose that Spain's unit labor requirement for producing cod fish is 0.20. How many units of labor does Spain have available each week? Explain your answer.
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