Due to border closures within Australia, Western Australia and Victoria have decided to stop trading with the other stat

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Due to border closures within Australia, Western Australia and Victoria have decided to stop trading with the other stat

Post by answerhappygod »

Due to border closures within Australia, Western Australia and
Victoria have decided to stop trading with the other states in
Australia. Western Australia has 100 total resources available,
Victoria has 280 total resources. Each state produces only two
goods, coal and coffee. Victoria can produce one unit of coal for
14 resources and one kilo of coffee for 22 resources. Western
Australia can produce one unit of coal for 10 resources and one
kilo of coffee for 25 resources. Assuming that each state can
produce fractional units of each good, which of the following
statements is NOT true? Select one: WA and VIC would be better off
trading with each other at a price of 0.5 kilos of coffee per unit
of coal. WA and VIC would be better off trading with each other at
a price of 0.5 units of coal per kilo of coffee. WA and VIC are not
willing to trade with each other at a price of 1.40 kilos of coffee
per unit of coal. WA and VIC are not willing to trade with each
other at a price of 0.71 kilos of coffee per unit of coal. None of
the above.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply