What are the gains from trade for each country

Assignment Help Business Economics
Reference no: EM131241422

Suppose that in England 5 man-hours are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour is required for a cask of wine and 4 man hours for a bolt of cloth. Each country has a labor force of 100 man-hours. If everyone in the world consumes exactly one bolt of cloth for each cask of wine, which country will export how much of what (if migration is illegal)? What are the gains from trade for each country? Hint: Can we figure out the equilibrium terms-of-trade without calculating the excess demand function(s)?

Reference no: EM131241422

Questions Cloud

What change processes may be required : Based upon the stakeholder group analyses, recommend the best solution for Ashford General Hospital with detailed justification. Explain why you feel it is the most viable and appropriate solution given the financial impact, HR issues, and interpe..
Projectile was launched to where it hits its target : What is the straight-line distance from where the projectile was launched to where it hits its target?
Market demand for chicken meat exemplifies : The world market demand for chicken meat exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for chicken meat in the world. Assuming chicken meat is a(n) normal good, a(n) decrease in numbe..
The world market demand for aluminum exemplifies : The world market demand for aluminum exemplifies a typical demand relationship. On your answer sheet, draw a graph of the initial market demand curve for aluminum in the world. Assuming aluminum is a(n) normal good, a(n) decrease in preferences (and ..
What are the gains from trade for each country : Suppose that in England 5 man-hours are required to produce each cask of wine and 5 man-hours are required to produce each bolt of cloth, whereas in Portugal 1 man-hour is required for a cask of wine and 4 man hours for a bolt of cloth. What are the ..
Company makes and sells skateboards at an average price : The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. Which of the following would ..
Graph the weekly budget line : Tom earns $20 per hour for up to 40 hours of work each week. He is paid $30 per hour for every hour in excess of 40. Tom faces a 10 percent tax rate and pays $5 per hour in child care expenses for each hour he works. Tom receives $100 in child suppor..
Measures that percentage share of the total sales : The four-firm_______________ measures that percentage share of the total sales in the industry that is accounted for by the largest four firms. When the regulators sets a price that a firm cannot exceed over that next few years, the regulator is enfo..

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate a laspeyres cost-of-living index

Roberto is a senior citizen who consumes food and healthcare. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. Calculate a Las..

  A large firm has two divisions

A large firm has two divisions: an upstream division that is a monopoly supplier of an input whose only market is the downstream division that produces the final output. To produce one unit of the final output, the downstream division requires one un..

  In your own words describe the wheel of retailing

In your own words describe the Wheel of Retailing. How would you classify Walmart in terms of its position on the wheel of retailing versus that of an off-price retailer?

  Apply the midpoints approach to the elasticity of supply

ADVANCED ANALYSIS Currently, at a price of $2 each, 200 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $2 to $4 is unit-elastic (Es = 1). In the long run, a..

  What is the internal rate of return of this investment

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $135,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

  What was the amount of the equal annual end-of-year payments

What was the amount of the equal annual end-of-year payments for each of ?rst 3 years? b. What was the amount of the equal annual end-of-year for each of the last 3 years?

  How does market research help in opportunity recognition

Opportunities being taken or missed out can be the be-all and the end-all for a company. How does market research help in opportunity recognition? Feel free to use examples in support of your answer.

  Pay off the loans remaining balance

A new car is purchased for $12,000 with a 10% down, 9% loan. The loan is for 4 years. After making 30 payments, the owner wants to pay off the loan's remaining balance. How much is owed?

  Utilize these funds to retool or expand production capacity

Suppose the CFO of an American corporation with surplus cash flow has $90 million to invest and the corporation does not believe it will need to utilize these funds to retool or expand production capacity for 1 year. What must the CFO expect about th..

  Inverse market demand curve

Phillip Haynes is the controller of a company that has the sole authority to manufacture your product. The inverse market demand curve is C(Q) =2Q +Q^2 . Your total cost equation is . What is the output you should produce, the price you should charge..

  An organization or business in your area that performs

Give an example of an organization or business in your area that performs the "place" function, and explain why you picked this organization/business.

  Group of investors is thinking about buying a ticket

A group of investors is thinking about buying a ticket also sharing the proceeds if they win. The organizer offers the following deal.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd