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

Marshalian demand, determination of optimal solution mathematical presentat...

determination of optimal solution mathematical presentation

Economic situation - ae model, "Describe the current Australian economic si...

"Describe the current Australian economic situation and support your claims with relevant economic indicators and variables.  The RBA has maintained the cash rate of 4.75% for the

Constructive political process for deficit, When Stockwell Day was leader o...

When Stockwell Day was leader of the Canadian Alliance Party (which soon became the new Conservative Party) he wrote that "the national debt is mortgaging our children's future." A

Capital account, Capital Account: The Capital Account presents transfe...

Capital Account: The Capital Account presents transfers of money and other capital items and changes in the country's foreign assets and liabilities resulting from the transac

Calculate the price of a forward contract, Commodities A) It i...

Commodities A) It is well documented that commodity prices are very volatile when compared to other asset classes.  Discuss factors that cause volatility in the commod

Insurance market and calculate risk premium, There are two individuals in t...

There are two individuals in town, one is high risk and the other is low risk.1 The probabilities of having an accident for the low risk individual and high risk individual are p

Law of diminishing marginal utility, law of diminishing marginal utility it...

law of diminishing marginal utility its assumptions, limitation, and its practical importance

Determinants of private demand - gender , Determinants of Private Demand - ...

Determinants of Private Demand - Gender Hypothetically, let us consider a family with two children, a boy and a girl. Let it be that both of them qualify in an entrance exami

Distributive bargaining, Distributive Bargaining An approach to negoti...

Distributive Bargaining An approach to negotiation that finds to divide up a fixed amount of resources.

Cost function, how do minimum unit costs change with changes in fixed cost?...

how do minimum unit costs change with changes in fixed cost?

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