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Category > Economics Posted 17 May 2017 My Price 10.00

Information on ASSIGNMENT 2

3. Consider the following model of trade between Home and Foreign. Assume
throughout that those two countries are the only two countries in the world, at
least for purposes of trade. There are two goods: Tables and Chairs. Consumers
always spend two fifths of their income on chairs and the remainder on tables.
The only factor of production is labour. Each home country worker can produce 1
table or 4 chairs per unit of time, while each foreign worker can produce 2 tables
or 2 chairs per unit of time. There are 20 workers in Home and 30 in Foreign.

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Status NEW Posted 17 May 2017 02:05 AM My Price 10.00

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file 1494987300-Solutions file.docx preview (56 words )
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