International Trade Homework
Étude de cas : International Trade Homework. Rechercher de 53 000+ Dissertation Gratuites et MémoiresPar Ririby • 3 Avril 2020 • Étude de cas • 1 311 Mots (6 Pages) • 491 Vues
Problem 2
An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: Labor Input to Good 1 Output of Good 1 Labor Input to Good 2 Output of Good 2
Labor Input to Good 1
Output of Good 1
Labor Input to Good 2
Output of Good 2
0
0.0
0
0.
10
25.1
10
39.8
20
38.1
20
52.3
30
48.6
30
61.8
40
57.7
40
69.3
50
66.
50
75.8
60
73.6
60
81.5
70
80.7
70
86.7
80
87.4
80
91.4
90
93.9
90
95.9
100
100
100
100
a.Graph the production functions for good 1 and good 2.
b.Graph the production possibility frontier. Why is it curved?
Answer
Labor Input to Good 1
Output of Good 1
Labor Input to Good 2
Output of Good 2
0
0
0
0
10
25.1
10
39.8
20
38.1
20
52.3
30
48.6
30
61.8
40
57.7
40
69.3
50
66
50
75.8
60
73.6
60
81.5
70
80.7
70
86.7
80
87.4
80
91.4
90
93.9
90
95.9
100
100
100
100
...