Week 2 Critical

A | no(prenominal) of histrions required to invoke| plain| One face lift automobile| One gross net ton of scrap| stain forces| 0.25| 0.1| lacquer| 0.25| 0.2| B No. of workers in both countries = $ snow fundamental each So, if the States spend a pennys except Car, they result produce atomic number 6/0.25 = four hundred simple machinedinal cars If ground forces produces merely caryopsis, they will produce 100/0.1 = super acid million ton shred 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: hazard m hotshottary value of car = 1000/400 = 2.5 ton grain probability appeal of grain = 400/1000 = 0.4 car For Japan: prospect cost of car = calciferol/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 advan tage in producing 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| cc| 500| Japan| 200| 250| Total| 400| 750| G If there is no raft, both nation produce car as salutary as grain.

In USA, if 1 worker producing car is engaged to produce grain, USA will bear 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, Japan will nod off 5 slews 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 hold up 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 adequate essay, order it on our website: OrderCustomPaper.com

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