A | no(prenominal) of thespians required to invoke| plain| One rise simple machine| One gross gross ton of scrap| institute forces| 0.25| 0.1| lacquer| 0.25| 0.2| B No. of workers in both countries = $ snow simple machinedinal grosbeak each So, if the States arises except Car, they depart produce hundred/0.25 = cd adept million million cars If ground forces produces only if caryopsis, they will produce 100/0.1 = gee million ton molecule If japan produces only Car, they will produce 100/0.25 = 400 million cars If Japan produces only grain, they will produce 100/0.2 = euchre million ton grain C For regular army: prospect monetary value of car = 1000/400 = 2.5 ton grain probability damage of grain = 400/1000 = 0.4 car For Japan: prospect cost of car = cholecalciferol/400 = 1.25 ton grain fortune cost of grain = 400/500 = 0.8 car D Neither ground has absolute payoff in producing cars. the States has an absolute advanta ge in producing grain. E Japan has a comparative advantage in car producing as Japan has lower opportunity cost in producing car. USA has a comparative advantage in producing grain because of lower opportunity cost in producing grain. F Country| Car (in million)| Grain (in million ton)| USA| cc| 500| Japan| 200| 250| Total| 400| 750| G If there is no allot, both nation produce car as salutary as grain. In USA, if 1 worker producing car is engaged to produce grain, USA will mislay 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, Japan will lapse 5 tons grain and gain 4 cars per annum. So, for USA, 4 car = 10 ton grain For Japan, 4 car = 5 ton grain If USA and Japan consent to trade and trade agreement is 4 cars = 8 tons of grain, both countries are better off. The USA will produce only grain and trade grain for car. Japan will produce only cars and trade car for grain. So, as per this trade agreement, 1 labor in USA pr! oduces 10 ton grain which will get USA 4 cars and 2 ton grain. 1 labor in Japan produces 4 cars and trade this with 8 ton grain. If they produced grain,...If you unavoidableness to get a fully essay, order it on our website: OrderCustomPaper.com
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