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Ricardian Model should be used to answer te questions Germany and France produce Televisions (T) and Microwaves (M). Both products are produced only with labor.

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Ricardian Model should be used to answer te questions

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Germany and France produce Televisions (T) and Microwaves (M). Both products are produced only with labor. The following table shows the requirements unit of labor (hours per unit produced) for each product in each country. Television Microwave Germany 4 1 France 6 Using the Ricardian Model, determine: 1. For each country, calculate the opportunity cost of the TV in terms of microwaves and the opportunity cost of the microwave in terms of televisions, and indicate where it is cheaper to produce televisions and where it is cheaper to produce microwaves. 2. Among what values must be the price of the TV in terms of microwave (PT / PM) for there to be trade between Germany and France. 3. Calculate the salary level for each country. [Hint: for this you must make some assumptions such as fixing a value for the price of the TV in terms of microwave, and with this, set the price (in $) of the TV (PT) and the price (in $) of the microwave (PM).] 4. With 3), calculate the costs (in $) for each product in each country. With this result explain the cost advantage that each country has to export a certain product

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