subject
Business, 15.02.2021 19:40 rose3358

Suppose that Spain and Germany both produce rye and shoes. Spain's opportunity cost of producing a pair of shoes is 5 bushels of rye while Germany's opportunity cost of producing a pair of shoes is 10 bushels of rye. By comparing the opportunity cost of producing shoes in the two countries, you can tell thatSpain has a comparative advantage in the production of shoes andGermany has a comparative advantage in the production of rye. Suppose that Spain and Germany consider trading shoes and rye with each other. Spain can gain from specialization and trade as long as it receives more than5 bushels of rye for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than1/10 pair of shoes for each bushel of rye it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of rye) would allow both Germany and Spain to gain from trade?a. 9 bushels of rye per pair of shoes b. 3 bushels of rye per pair of shoes c. 1 bushel of rye per pair of shoes d. 8 bushels of rye per pair of shoes

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 00:20
Suppose that the world price of steel is $100 a ton, india does not trade internationally, and the equilibrium price of steel in india is $60 a ton. suppose that india now begins to trade internationally. the price of steel in india the quantity of steel produced in india a. does not change; does not change b. falls; increases c. falls; decreases d. rises; decreases e. rises; increases the quantity of steel bought by india india steel. a. increases; exports b. decreases; imports c. decreases; exports d. does not change; neither imports nor exports e. increases; imports
Answers: 2
question
Business, 22.06.2019 01:40
Suppose general motors demands labor according to the labor demand function 푤푤= 40−0. 5퐸퐸, where 푤푤 is the hourly wage and 퐸퐸 is the number of employees. the united auto workers union has a utility function given by 푈푈=푊푊∗퐸퐸. a.in 1984, the united auto workers union started negotiations with general motors by assuming that they were a monopoly union. find the wage and employment demands that the united auto workers union would have demanded before any bargaining began. b.if general motors and the united auto workers union both had excellent bargaining representatives, would this be the final labor contract? if not, then explain in words and graphically where they would end up after the bargaining process.
Answers: 1
question
Business, 22.06.2019 07:50
The questions of economics address which of the following ? check all that apply
Answers: 3
question
Business, 22.06.2019 11:30
1.     regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c   incorrect
Answers: 2
You know the right answer?
Suppose that Spain and Germany both produce rye and shoes. Spain's opportunity cost of producing a p...
Questions
question
History, 27.08.2020 21:01
question
Mathematics, 27.08.2020 21:01
question
Mathematics, 27.08.2020 21:01
question
Mathematics, 27.08.2020 21:01
Questions on the website: 13722367