Question
South Korea and Thailand have the same number of resources. South Korea can produce either 1800 tonnes of rice or 300 pineappes. Thailand can produce
South Korea and Thailand have the same number of resources. South Korea can produce either 1800 tonnes of rice or 300 pineappes. Thailand can produce either 2400 tonnes of rice or 1200 pineapples.
After specializing in the good in which it has a comparative advantage, the two countries decide to trade with one another at a relative price of 1.5 tonnes of rice for 1 pineapple.
As a result of specialization and trade, Thailand's consumption possibility frontier will be a straight line with a rice intercept of ____________tonnes and a pineapple intercept of____________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started