2. Americana and Mexican workers can each produce 10 T-shirtsper day. An America
ID: 1251674 • Letter: 2
Question
2. Americana and Mexican workers can each produce 10 T-shirtsper day. An American worker can produce 18 dozen brownies per day,whereas a Mexican worker can produce 10 dozen brownies per day. Tokeep things simple, assume that each country has 1 millionworkers.c. For the United States, what is the opportunity cost of aT-shirt? Of a dozen brownies? For Mexico, what is what is theopportunity cost of a T-shirt? Of a dozen brownies? Put thisinformation in a table analogous to table 2. d. Which country has an absolute advantage in producingT-shirts? In producing brownies? e. Which country has a comparative advantage in producingT-shirts? In producing brownies? f. Without trade, half of each country's workers produceT-shirts and half produce brownies. What quantities ofT-shirts and brownies does each country produce? g. Starting from a position of no trade, give an example inwhich trade makes each country better off. 2. Americana and Mexican workers can each produce 10 T-shirtsper day. An American worker can produce 18 dozen brownies per day,whereas a Mexican worker can produce 10 dozen brownies per day. Tokeep things simple, assume that each country has 1 millionworkers.
c. For the United States, what is the opportunity cost of aT-shirt? Of a dozen brownies? For Mexico, what is what is theopportunity cost of a T-shirt? Of a dozen brownies? Put thisinformation in a table analogous to table 2. d. Which country has an absolute advantage in producingT-shirts? In producing brownies? e. Which country has a comparative advantage in producingT-shirts? In producing brownies? f. Without trade, half of each country's workers produceT-shirts and half produce brownies. What quantities ofT-shirts and brownies does each country produce? g. Starting from a position of no trade, give an example inwhich trade makes each country better off.
Explanation / Answer
C. Tshirt 10/18 brownies 18/10. Opportunity cost ofbrownies is higher than a t-shirt in America. In Mexico, 10/10 and 18/10 brownies. Brownies opportunity costs arehigher. D. America 10/18 and Mexico 10/10Mexico should producet-shirts. America should prouduce brownies. E. Comparitive advantage in T-shirts for USA and Brownies forMExico These are the main questions, f and g should be able to donow.Related Questions
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