Economics: Two Islands Opportunity Cost

May 21st, 2016
Studypool Tutor
Price: $10 USD

Tutor description

Two neighboring island countries, production, opportunity cost, jeans, wheat, Bellissima, Dolorium

Word Count: 584
Showing Page: 1/3
New #2:Consdier two neighboring island countries, Bellissima and Dolorium. Each has900,000 labor hours available per weel that it can use to produce wheat, jeans, or acombination of both. The following table shows the amount of labor hours requiredto produce one bushel of wheat or one pair of jeans._____________ (Dolorium, Bellissima) has an absolute advantage in the production ofwheat, and _______________ (Dolorium, Bellissima) has an absolute advantage in theproduction of jeans.Initially, suppose Bellissima uses 225,000 hours of labor per week to produce wheatand 675,000 hours per week to produce jeans. Consequently, Bellissima produces5,625 bushels of wheat and 67,500 pairs of jeans, and Dolorium produces 18,750bushels of wheat and 37,500 pairs of jeans. Assume there are no other countieswilling to trade goods, so in the absence of trade between these two countries, each

Review from student

Studypool Student
" Awesome! Exactly what I wanted. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors