Question 8 Please awnser question 8 a b and c Britain and France are countries in a Ricardian trade model. Each country produceswine and bread.Unit labour requirement for wine in Britain, in hours: aw = 12Unit labour requirement for bread in Britain, in hours: ALB = 3Unit labour requirement for wine in France, in hours: atw = 2Unit labour requirement for bread in France, in hours: aLB = 1Britain and France both have 600 hours of labour available.Qw and QB are the quantities of wine and bread produced in Britain.Qw and Q are the quantities produced in France.(a)Explain what is meant by the “unit labour requirement in hours”.(b)Calculate labour productivity, in terms of units produced per hour, for each good ineach country.(c)Explain which country has the comparative advantage in wine production, and why.

International trade refers to the exchange of goods and services between two or more nations for…

Britain and France are countries in a Ricardian trade model. Each country produces wine and bread. Unit labour requirement for wine in Britain, in hours: azw = 12 Unit labour requirement for bread in Britain, in hours: aLB = 3 Unit labour requirement for wine in France, in hours: alw = 2 Unit labour requirement for bread in France, in hours: aÏB = 1 Britain and France both have 600 hours of labour available.

Britain and France are countries in a Ricardian trade model. Each country produces wine and bread. Unit labour requirement for wine in Britain, in hours: azw = 12 Unit labour requirement for bread in Britain, in hours: aLB = 3 Unit labour requirement for wine in France, in hours: alw = 2 Unit labour requirement for bread in France, in hours: aÏB = 1 Britain and France both have 600 hours of labour available.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter6: Managing In The Global Economy

Section: Chapter Questions

Problem 8E

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