Show on the PPF how both Germany and France gain from trade. B) How many units of apples and bananas will be produced in the world after trade?
Show on the PPF how both Germany and France gain from trade. B) How many units of apples and bananas will be produced in the world after trade?
Chapter2: Production Possibilities Frontier Framework
Section: Chapter Questions
Problem 3WNG
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Assume that Germany has 1200 units of labor available and it can produce two goods: apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. France has a labor force of 800. France’s unit labor requirement in apple production is 5, while in banana production it is 1.
A) Show on the
B) How many units of apples and bananas will be produced in the world after trade?
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