ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Home has a comparative advantage in wheat, and Foreign has a comparative advantage in cloth. Once trade occurs, Home produces 1,500 bushels of wheat, and Foreign produces 1,000 yards of cloth. The following table shows the amount of wheat that Home is willing to trade to acquire more cloth.
the international price of cloth is 1.5 bushels of wheat per yard, how many bushels of wheat will Home export to Foreign?
Select one:
a. 550 bushels
b. 800 bushels
c. 1,050 bushels
d. 700 bushels
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