Goods Grapes Textiles Spain 8 4 Note: figures are hours of labor per unit of output France 15 5

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 13RQ: What is the difference between a fixed input and a variable input?
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Goods
Grapes
Textiles
Spain
8
4
Note: figures are hours of labor per unit of output
France
15
5
Transcribed Image Text:Goods Grapes Textiles Spain 8 4 Note: figures are hours of labor per unit of output France 15 5
Once trade begins, a possible terms-of-trade for textiles in terms of grapes is
(A: 5; B: 2/5; C: 2; D: 4/5).
Transcribed Image Text:Once trade begins, a possible terms-of-trade for textiles in terms of grapes is (A: 5; B: 2/5; C: 2; D: 4/5).
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