Week 2 Critical

A | no(prenominal) of proles required to invoke| plain| One cosmetic surgery automobile| One short ton of scrap| fuzee forces| 0.25| 0.1| japan| 0.25| 0.2| B No. of workers in both countries = $ snow primeval each So, if the States becomes except Car, they bequeath produce degree centigrade/0.25 = four hundred billion machines If ground forces produces and caryopsis, they will produce 100/0.1 = h wizy oil million ton iota If japan produces only Car, they will produce 100/0.25 = 400 million cars If Japan produces only grain, they will produce 100/0.2 = euchre million ton grain C For regular army: opportunity monetary value of car = 1000/400 = 2.5 ton grain probability constitute of grain = 400/1000 = 0.4 car For Japan: prospect cost of car = five hundred/400 = 1.25 ton grain fortune cost of grain = 400/500 = 0.8 car D Neither ground has absolute payoff in producing cars. the States has an absolute advantage in producin g grain. E Japan has a comparative advantage in car producing as Japan has lower opportunity cost in producing car. USA has a comparative advantage in producing grain because of lower opportunity cost in producing grain. F Country| Car (in million)| Grain (in million ton)| USA| two hundred| 500| Japan| 200| 250| Total| 400| 750| G If there is no cope, both nation produce car as salutary as grain.

In USA, if 1 worker producing car is engaged to produce grain, USA will suffer 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, Japan will dawdle 5 oodles grain and gain 4 cars per annum. So, for USA , 4 car = 10 ton grain For Japan, 4 car! = 5 ton grain If USA and Japan fit out to trade and trade agreement is 4 cars = 8 tons of grain, both countries are better off. The USA will produce only grain and trade grain for car. Japan will produce only cars and trade car for grain. So, as per this trade agreement, 1 labor in USA produces 10 ton grain which will get USA 4 cars and 2 ton grain. 1 labor in Japan produces 4 cars and trade this with 8 ton grain. If they produced grain,...If you unavoidableness to get a right essay, order it on our website: OrderEssay.net

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