Question
Trade between North and South Korea was legalized in 1988, but it's currently very limited. Assume, however, that Hyundai hires a workforce of 600workers in
Trade between North and South Korea was legalized in 1988, but it's currently very limited. Assume, however, that Hyundai hires a workforce of 600workers in a plant in North Korea just across the boundary with South Korea, where a "partner" plant with 600 workers is located.
Suppose that auto workers in South Korea can produce components used to make cars at the rate of 6 sets of components per worker per day and can assemble cars at the rate of 4 cars per worker per day. In North Korea, auto workers can produce components at the rate of 1
set of components per day and can assemble cars at the rate of 3cars per worker per day.
One set of components is required for each car.
If each plant carries out production independently without trade, then South Korea can produce a maximum of__ cars and North Korea can produce a maximum of__ cars.
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