In perfect competition, all buyers and sellers :Select one:Oa. None of the aboveO b. Take the market price as a given or constant entityO c. Have market power in varying degreesd. Engage in active non-price competitione. Lack the ability to change quantity demanded or produced I can catch 12 kg fish or produce 6 bottles of wine in a week. My neighbour can catch 4 kg of fish orproduce 4 bottles of wine in a week. Who has a comparative advantage in wine? Who shouldspecialize in wine if we coordinate our economic activities?My neighbour has a comparative in fish, so he should specialize in fish.My neighbour has a comparative in fish, so he should specialize in wine.My neighbour has a comparative in wine, so I should specialize wine.My neighbour has a comparative in wine, so he should specialize in wine.09

As the two questions are different answer is provided to the first question. "Perfect competitive…

Answered: In perfect competition, all buyers and…

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 2QCMC

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In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?

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In perfect competition, all buyers and sellers : Select one: a. None of the above O b. Take the market price as a given or constant entity O c. Have market power in varying degrees d. Engage in active non-price competition e. Lack the ability to change quantity demanded or produced