Residents of the nation of Border Kingdom can forgo production of digital televisions and utilize all available resources to produce bottles of high-quality wine per hour. Alternatively, they can forgo producing wine and instead produce digital TVs per hour. In the neighboring country of Coastal Realm, residents can forgo production of digital TVs and use all resources to produce bottles of high-quality wine per hour, or they can forgo wine production and produce digital TVs per hour. In both nations, the opportunity costs of producing the two goods are constant.
a. What is the opportunity cost of producing digital TVs in Border Kingdom? Of producing bottles of wine in Border Kingdom?
b. What is the opportunity cost of producing digital TVs in Coastal Realm? Of producing bottles of wine in Coastal Realm?
a. The opportunity cost of producing digital TVs in Border Kingdom is of producing bottles of wine in Border Kingdom is .
b. The opportunity cost of producing digital TVs in Coastal Realm is of producing bottles of wine in Coastal Realm is .
The Frontier Empires have just a west border where its Dazzling Water meets their. Several coastlines range out from edge of the River Scelptar with in southward here to inlet of the Port of Spit as in north, beyond Theymarsh. It Whirlwind Rivers flow and along eastern border both of Fencing Kings. and this artificial barrier goes eastern for about yards to Alamontyr, their eastern side metropolis.
In the other phrases, that's the actual cost of both the top pick and indeed the value of both the foremost solution.
The following table highlights total supply of Glass Containers of Tellies in the Frontier Empire the Coastline Region, to between:
a) Within Frontier County, the future cost of screens is calculated by the following equation:
You could see from the table well above the:
That possibility cost is determined by changing the quantities as in calculation following table:
As either a corollary, total opportunity of television in Frontier County equals wine fixed crates.
Determine the Pinot Bottles' actual cost in Frontier County already:
As either a corollary, total opportunity of Wine containers in Frontier County equals television for set.
b) Under Shoreline Realm, the future cost owning TVs are calculated by the following equation:
As could see in the column above those:
The possibility price is estimated by entering these variables there in calculation elsewhere here:
As both a corollary, total economic cost of either a show in Maritime Horizon is champagne liters per screen.
Potential expected cost of rent in Riviera Monarchy Glass Containers be determined using the formula:
As either a conclusion, its glass bottle marginal utility in Seaside Kingdom is T.V's every glass bottle.
Critics of the North American Free Trade Agreement (NAFTA) suggest that much of the increase in exports from Mexico to the United States now involves goods that Mexico otherwise would have exported to other nations. Mexican firms choose to export the goods to the United States, the critics argue, solely because the items receive preferential treatment under NAFTA tariff rules. What term describes what these critics are claiming is occurring with regard to U.S.-Mexican trade as a result of NAFTA? Explain your reasoning.
Refer to your answers to Problem when answering the following questions.
a. Which one of the following rates of exchange of modems for flash memory drives will be acceptable to both nations: (i) modems for flesh drive; (ii) modem for flash drive; or (iii) flash drive for modems? Explain.
b. Suppose that each nation decides to use all available resources to produce only the good for which it has a comparative advantage and to engage in trade at the single feasible rate of exchange you identified in part (a). Prior to specialization and trade, residents of South Shore chose to produce and consume modems per hour and flash drives per hour, and residents of East Isle chose to produce and consume modems per hour and flash drives per hour. Now, residents of South Shore agree to export to Fast Isle the same quantity of South Shore's specialty good that Fast Isle residents were consuming prior to engaging in international trade. How many units of East Isle's specialty good does South Shore import from East Isle?
c. What is South Shore's hourly consumption of modems and flash drives after the nation specializes and trades with East Isle? What is East Isles hourly consumption of modems and flash drives after the nation specializes and trades with South Shore?
d. What consumption gains from trade are experienced by South Shore and East Isle?
To answer the questions below, consider the following table for the neighboring nations of Northland and West Coast. The table lists maximum feasible hourly rates of production of pastries if no sandwiches are produced and maximum feasible hourly rates of production of sandwiches if no pastries are produced. Assume that the opportunity costs of producing these goods are constant in both nations.
a. What is the opportunity cost of producing pastries in Northland? Of producing sandwiches in Northland?
b. What is the opportunity cost of producing pastrics in West Coast? Of producing sandwiches in West Coast?
Suppose that the two nations in Problems and choose to specialize in producing the goods for which they have a comparative advantage. They agree to trade at a rate of exchange of pastry for sandwich. At this rate of exchange, what are the maximum possible numbers of pastries and sandwiches that they could agree to trade?
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