Per Winter Hat US $10.00 Russia 5,000 Rubles Per Bushel of Wheat US $1.00 Russia 2,500 Rubles a. What is the opportunity cost of producing one more winter hat in the US? In Russia? b. What is the opportunity cost of producing one more bushel of wheat in the US? In Russia? c. Which country has a comparative advantage in winter hats? In wheat?
Per Winter Hat US $10.00 Russia 5,000 Rubles Per Bushel of Wheat US $1.00 Russia 2,500 Rubles a. What is the opportunity cost of producing one more winter hat in the US? In Russia? b. What is the opportunity cost of producing one more bushel of wheat in the US? In Russia? c. Which country has a comparative advantage in winter hats? In wheat?
Chapter20: International Trade
Section20.1: International Trade Theory
Problem 1ST
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Per Winter Hat | US $10.00 | Russia 5,000 Rubles |
---|---|---|
Per Bushel of Wheat | US $1.00 | Russia 2,500 Rubles |
a. What is the opportunity cost of producing one more winter hat in the US? In Russia?
b. What is the opportunity cost of producing one more bushel of wheat in the US? In Russia?
c. Which country has acomparative advantage in winter hats? In wheat?
b. What is the opportunity cost of producing one more bushel of wheat in the US? In Russia?
c. Which country has a
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