The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept? Number of units produced per hour Bicycles Cars Country A 5 2 Country B 10 6 The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept? Number of units produced per hour Bicycles Cars Country A 5 2 Country B 10 6 The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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The figure shows the number of cars and bicycles that can be produced per hour in Country A and Country B. Using comparative advantages, what would be a "terms-of-trade" that both countries should accept?
Number of units produced per hour | Bicycles | Cars |
Country A | 5 | 2 |
Country B | 10 | 6 |
The answer is: 1 Bicycle = 1/2 Car. Could someone explain why?
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