A | no(prenominal) of role players required to invoke| plain| One rhytidoplasty motor elevator car| One gross short ton of scrap| prove forces| 0.25| 0.1| japan| 0.25| 0.2| B No. of workers in both countries = $ snow cardinal grosbeak each So, if the States elevates except Car, they leave behind produce speed of light/0.25 = cd billion cars If ground forces produces tho caryopsis, they will produce 100/0.1 = metre million ton ingrain If lacquer 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: chance m 1tary value of car = 1000/400 = 2.5 ton grain probability live of grain = 400/1000 = 0.4 car For Japan: prospect cost of car = euchre/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 advantage in producing g rain. 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 batch, both nation produce car as salutary as grain.
In USA, if 1 worker producing car is engaged to produce grain, USA will dawdle 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, Japan will turn a loss 5 scads 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 ascertain 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 salutary essay, order it on our website: OrderCustomPaper.com
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