ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Background information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.
Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined?
Part B: Calculate the
Part C: Calculate the opportunity cost of producing cell phones for each country.
Part D: Determine how many jeans should be produced by each nation.
Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your explanation.
Part F: Finally, how many total jeans and cell phones will be produced by the two nations combined after specialization?
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Since you have asked a question with multiple subparts, we would be answering the first three for you. For the rest of the subparts to be answered, kindly re-submit the question and mention and the subparts to be solved.
A) If both countries produce both the goods, then they would produce half of total units of each good.
USA would produce 500 jeans and 25 cell phones in a week.
China on the other hand would produce 500 Jeans and 50 cell phones a week
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