3. Assume a Ricardian, constant-cost world. There are two countries, the United Kingdom and France. Each country can produce cameras and milk. The table below shows production per man-hour for each country. United France Kingdom Cameras Milk 1 2 The United Kingdom has a labour force of 1,000 workers, and France has a labor force of 500 workers. a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).
3. Assume a Ricardian, constant-cost world. There are two countries, the United Kingdom and France. Each country can produce cameras and milk. The table below shows production per man-hour for each country. United France Kingdom Cameras Milk 1 2 The United Kingdom has a labour force of 1,000 workers, and France has a labor force of 500 workers. a) Graph the world supply curve for cameras. b) Show a possible world demand curve and price (assuming that both countries completely specialize).
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
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