solutions to in class excercise comparative advantage

solutions to in class excercise comparative advantage - 1 F...

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Comparative Advantage: Solution to In-class Exercise U A 1 F = 0.01 C A U 1 F = 0.04 C A U 1 C = 35 F Germany US 1 C = 1000/20 = 50 F (buyer) 1 F = 20/1000 = 0.020 C (seller) Germany U A 1 C = 52 F 1 C = 400/10 = 40 F (seller)
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Unformatted text preview: 1 F = 10/400 = 0.025 C (buyer) US Cost of C (in terms of F) Cost of F (in terms of C) Opportunity Cost 20 1000 Germany 10 400 US Clothing ( C ) Food ( F ) Total Output Per Worker...
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