There are 2 countries, D and F. There are 2 products X and Y. Each country has only a single input labor hours, Li j, where i is D for Domestic or F for Foreign and j is either X for Good X use of the labor or Y for Good Y use of labor. In country D: In country F: Xp = an*LD, x Yp = bp*LD, Y LD = LD, x+ LD, Y XF = ag*LF, X YF = be*LF, Y LF = LF, x + LF, Y At the moment: ap = 0.25, bp = 0.5, LD = 32, ar = 0.8, bE = 0.4, LF = 40. Each country is operating in autarky and has determined to divide its labor force equal between the production EX and Y. In Autarky find complete the following tables: 1. Find hours (amount of L.) in each country to produce 1 unit of each good. Hours to 1 unit Y D F 2. In D, what is the cost of 1 unit of X? X = |Y 3. In D, what is the cost ofl unit of Y? Y = 4. In F, what is the cost of 1 unit of X? X = Y 5. In F, what is the cost of 1 unit of Y? Y =

There are 2 countries, D and F. There are 2 products X and Y. Each country has only a single input labor hours, Li j, where i is D for Domestic or F for Foreign and j is either X for Good X use of the labor or Y for Good Y use of labor. In country D: In country F: Xp = anLD, x Yp = bpLD, Y LD = LD, x+ LD, Y XF = agLF, X YF = beLF, Y LF = LF, x + LF, Y At the moment: ap = 0.25, bp = 0.5, LD = 32, ar = 0.8, bE = 0.4, LF = 40. Each country is operating in autarky and has determined to divide its labor force equal between the production EX and Y. In Autarky find complete the following tables: 1. Find hours (amount of L.) in each country to produce 1 unit of each good. Hours to 1 unit Y D F 2. In D, what is the cost of 1 unit of X? X = |Y 3. In D, what is the cost ofl unit of Y? Y = 4. In F, what is the cost of 1 unit of X? X = Y 5. In F, what is the cost of 1 unit of Y? Y =

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 24EQ: Suppose the coal and steel industries form a closed economy. Every $1 produced by the coal industry...

See similar textbooks