Determine he combined production of fiber optic cable , Microeconomics

Assignment Help:

Graph the following example and answer the questions: The United States and Japan only produce two goods.  They have the same fixed resources and they are equally efficient, and both countries have constant opportunity costs between the two goods.  In one month, the United States can make 200,000 units of fiber optic cable or 600,000 flash drives.  Japan can produce 300,000 units of fiber optic cable or 600,000 flash drives. 

  • Who has the Absolute Advantage in the production of Flash Drives?
  • Who has the Absolute Advantage in the production of Fiber Optic Cable?
  • What is the opportunity cost for the USA for Flash Drives?
  • What is the opportunity cost for the USA for Fiber Optic Cable?
  • What is the opportunity cost for Japan for Flash Drives?
  • What is the opportunity cost for Japan for Fiber Optic Cable?

 

**If both countries devote 50% of their resources to the production of both goods...

  • ...what would the USA's production of Flash Drives be?
  • ...what would the USA's production of Fiber Optic Cable be?
  • ...what would Japan's production of Flash Drives be?
  • ...what would Japan's production of Fiber Optic Cable be?
  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?

 

**If the two nations each specialize where they have a comparative advantage...

  • ...what would the USA's produce, and how much?
  • ...what would Japan's produce and how much?
  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?

 

**Compared to when each nation was producing both goods...

  • ...what would the combined production of Flash Drives be?
  • ...what would the combined production of Fiber Optic Cable be?
  • Would these nations enter a trade agreement?
  • Why or why not?

Related Discussions:- Determine he combined production of fiber optic cable

Baumol tobins inventory model, Under specified assumptions, derive the squa...

Under specified assumptions, derive the square-root formula of the Baumol-Tobin's inventory model of transactions demand for money and briefly describe the effect of a one period i

Labor , #questThe demand for and supply of labour in a certain industry are...

#questThe demand for and supply of labour in a certain industry are given by the equations Nd = 400 - 2w Ns = 240 + 2w Where Nd ( is the number of workers employers want to hire

Calculates benefit cost ratio using current dollars, When there is a positi...

When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take o

Kaldor hicks, limitation of kaldor hicks in compensation test and welfare c...

limitation of kaldor hicks in compensation test and welfare criteria

Imf-world bank harmony, IMF-World Bank Harmony: Bretton Woods institut...

IMF-World Bank Harmony: Bretton Woods institutions work in tandem. World Bank BOP support is not available with a Fund Programme, while a Fund Programme cannot be finalised w

Supply and demand, Explain the meaning of the statment "coffee and tea are ...

Explain the meaning of the statment "coffee and tea are close substitutes".

Derive the optimal contract, Assume that in the market there exist two type...

Assume that in the market there exist two types of workers where the principle cannot distinguish types. The two types only differ with respect to the disutility of effort. The dis

Consumer surplus, Consumer Surplus  -Difference between maximum amounts...

Consumer Surplus  -Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid. The stepladder demand curve is converted into a

National income, National income: The national income or product ...

National income: The national income or product or expenditure provides a measure of total value at factor cost of final goods and services, which are available either fo

Write Your Message!

Captcha
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