Germany can produce either 40 units of pretzels or 20 units of cars per labour hour.
Canada can produce either 74 units of pretzels or 15 units of cars per labour hour.
Suppose Canada follows its comparative advantage in deciding what to produce and
trade with Germany at a trade price of 0.38 units of cars for one unit of pretzel. For
every 4810 units of the goods that Canada produces and trades with Germany, what
are the gains from trade in terms of the other goods?
Answer:
units
(DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL
ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES.
AND NO SEPARATOR FOR THOUSANDS IS REQUIRED.)
Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 74 units
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Germany can produce either 40 units of pretzels or 20 units of cars per labour hour. Canada can produce either 74 units
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!