Wine Chocolate aLc -6 hours per pound a = 2 hours per pound Home aw 5 hours per

Question

Wine Chocolate aLc -6 hours per pound a = 2 hours per pound Home aw 5 hours per gallon Foreign aLW a, w -6 hours per gallon LC where number of labor hours needed to produce a unit of chocolate in Home; aLC aLw LC LW Pc - the absolute or money price of chocolate on world markets; PW = the absolute or money price of wine on world markets number of labor hours needed to produce a unit of wine in Home; = number of labor hours needed to produce a unit of chocolate in Foreign: number of labor hours needed to produce a unit of wine in Foreign: In post-trade equilibrium with Pc Pw $20, the wage of workers in Foreign relative to the wage of workers in Home will be equal to O C. 2.5 OD, $2.5 OA. 0.4 0 B. $10

Explanation / Answer

=5/2=2.5.Note we have calculated relative wage based on no. Of labour hours needed to produce 1 unit. Thus we can't use dollar sign

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.