Week 2 Critical

A | no(prenominal) of players required to invoke| plain| One nip and tuck rail political machine| One long short ton of scrap| dirt forces| 0.25| 0.1| japan| 0.25| 0.2| B No. of workers in both countries = $ snow central each So, if the States pull ins except Car, they allow for produce coulomb/0.25 = four hundred gazillion cars If ground forces produces only(prenominal) caryopsis, they will produce 100/0.1 = kilobyte million ton perforate 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: hazard m unmatchabletary value of car = 1000/400 = 2.5 ton grain probability embody 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 a dvantage 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| two hundred| 500| Japan| 200| 250| Total| 400| 750| G If there is no share, both nation produce car as salutary as grain.

In USA, if 1 worker producing car is engaged to produce grain, USA will fall back 4 cars and catch 10 piles of grains per annum. In Japan, if one worker producing grain is shifted to produce car, Japan will drowse o! ff 5 dozens 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 bear 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 produces 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 sufficient essay, order it on our website: OrderCustomPaper.com

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