The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept? Number of units produced per hour Bicycles Cars Country A 5 2 Country B 10 6 The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept? Number of units produced per hour Bicycles Cars Country A 5 2 Country B 10 6 The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter3: Solving Equation And Problems
Section3.6: Problem Solving: Using Charts
Problem 6P
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The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept?
| Number of units produced per hour | Bicycles | Cars |
| Country A | 5 | 2 |
| Country B | 10 | 6 |
The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
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