Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Unit labor requirements to produce C and W, respectively, are 10 and 20 in HC and 60 and 30 in FC.HC has 150 units of
Unit labor requirements to produce C and W, respectively, are 10 and 20 in HC and 60 and 30 in FC.HC has 150 units of labor and FC 300.Workers in both countries divide expenditure equally between C and W (PC/PW= QW/QC).We may conclude that in the free trade equilibrium HC exports ____ and international price of C in terms of W (= PCI/PWI) is ________.
A. W, 3/2
B. C,
C. W, 2/3
D. C, 3/2
E. C, 2/3
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