Project #17460 - Costs

Adjusted Deliverable Length: 700 plus 3 APA Citations ALL orginal

Instructor Comments:

Please use the following requirements for this assignment:

Suppose that there are two products: clothing and soda. Both Brazil and the United States can produce only these two products. Brazil can produce 100,000 units of clothing per year or 50,000 cans of soda per year at the maximum. The United States can produce 65,000 units of clothing per year or 250,000 cans of soda at the maximum. Assume that costs remain constant and that the PPF of each country are straight lines.

1) Make a sketch of the production possibility frontiers for Brazil and the US.

Suppose that without trade, the US produces 45,000 units of clothing and 150,000 cans of soda. Without trade, Brazil produces 75,000 units of clothing and 30,000 cans of soda.

2) Denote these points on each country’s production possibility frontier.

3) What is the marginal transformation rate for each country?

4) Should the two countries specialize and trade? If so, who has the comparative advantage in what product? Once they specialize, how much does output increase?

 

 

 

Subject Business
Due By (Pacific Time) 11/24/2013 12:00 am
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy