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Exhibit 29-4 -Answer the Questions Below

Question 65

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Exhibit 29-4 Exhibit 29-4   -Answer the questions below: (A) Suppose country A has 100 units of labor and country B has 200 units of labor. Based on the information in Exhibit 29-4, draw the production possibilities curve for both countries, with radios on the horizontal axis. What is the slope of each curve? (B)Suppose the posttrade relative price is 1/3 radio per banana, or equivalently 1 radio per 3 bananas. Draw the posttrade production possibilities curve for each country and identify the production point for each country.
-Answer the questions below:
(A) Suppose country A has 100 units of labor and country B has 200 units of labor. Based on the information in Exhibit 29-4, draw the production possibilities curve for both countries, with radios on the horizontal axis. What is the slope of each curve?
(B)Suppose the posttrade relative price is 1/3 radio per banana, or equivalently 1 radio per 3 bananas. Draw the posttrade production possibilities curve for each country and identify the production point for each country.

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(A)See graph below. The slope for countr...

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