Is this correct or am I doing it wrong??? Assume that Great Britain and the Unit

Question

Is this correct or am I doing it wrong???

Assume that Great Britain and the United States can both produce wheat (W) and cloth (C). The amount of wheat and cloth that each nation can produce in one day is presented below. a. Use the information above to compute the opportunity cost of producing 1 unit of wheat in each country. For Great Britain, the opportunity cost of producing 1 unit of wheat is unit(s) of cloth. unit(s) of cloth. For the United States, the opportunity cost of producing 1 unit of wheat is b. Use the information above to compute the opportunity cost of producing 1 unit of cloth in each country. For Great Britain, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. For the United States, the opportunity cost of producing 1 unit of cloth is unit(s) of wheat. c. With mutually beneficial trade, wheat will be exported by the United States at a price higher than unit(s) of cloth but lower than unit(s) of cloth. With mutually beneficial trade, cloth will be exported by Great Britain at a price higher than .25 unit(s) of wheat but lower than 2 unit(s) of wheat. Assume that internationally 1 unit of wheat can be traded for 0.8 unit of cloth, which is the same as 1C = 1.25 W which of the following statements is correct? Only Great Britain will benefit from trade. Both nations will benefit from trade. Neither nation will benefit from trade. Only the United States will benefit from trade.

Explanation / Answer

Yes, all the blanks filled are correct. you doing it right.

e Both nation benefit from trade as final consumption increases in both the countries.

If you don't understand anything then comment, I'ill revert back on the same. :)

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