Description
Use the information in this table on labor productivities in France and Germany to answer what are the upper and lower bounds for the trade price of cheese?
Output per Hour Worked | ||
France | Germany | |
Cheese | 2 kilograms | 1 kilogram |
Cars | 0.25 | 0.5 |
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Explanation & Answer
The productivity of France is higher in cheese.
The productivity of Germany is higher in car
The France productivity = 0.25 car/2 kilo =(1/4)/2 =1/8 car per kilo
The German productivity = 0.5 car/1 kilo = 1/2 car per kilo
Hence price will be somewhere between 1/8 car per kilo to 1/2 car per kilo
Hence price will be somewhere between 0.125 car per kilo to 0.5 car per kilo
Review
Review
Anonymous
Nice! Really impressed with the quality.
Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Content
Risk and Return Analysis, economics homework help
FINANCE CLASSCreate a 1,050-word report, and include the following:
Explain the relationship between risk and returnIdent...
ECON 1010 RMIT University Fiscal Policy and Managing Government Budgets Paper
RMIT Classification: Trusted
Macroeconomics 1, Semester 1, 2022
Assignment 3
Please read through all of these instruction...
ECOM 101 Saudi Electronic University E Commerce Worksheet
College of Administrative and Financial Sciences
ECOM101 – E-commerce
E-commerce Project (Part B)
Second Semester 2021-...
King Saud University Financial Derivatives Essay
1.Provide an explanation and an example of when futures contracts might have negative prices. (600 words)2.Explain what is...
ECON- Risk Management and Insurance Class- Final report of term paper
This is the most important paper for my economics class. Please follow the instructions and the proposal, write a ...
University of Oxford Supply of Gasoline Changes Causing Price of Gasoline to Change MCQ
The supply of gasoline changes, causing the price of gasoline to change. The resulting
movement from one point to another ...
C308 Ascent Of Money
In order to understand the origin of money and the value that is placed on it, it is important to look at the past and see...
Market Liberalization And Agriculture In Ksa
The Effect of Trade Liberalization on Agriculture in the Kingdom of Saudi Arabia The Effect of Trade Liberalization on Agr...
Economics Quiz 1
Plastic surgery means to form or mold. Plastic surgery is a surgical improvement, and specialty changes of a person's look...
