Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Economics Posted 06 May 2018 My Price 7.00

worker in Lakeland

A worker in Lakeland can produce either 5 units of wheat or 30 units of fish per year, and a worker in Hillcountry can produce either 30 units of wheat or 5 units of fish per year. There are 10 workers in each country. Political pressure from the fish lobby in Hillcountry and from the wheat lobby in Lakeland has prevented trade between the two countries on the grounds that cheap imports would kill the fish industry in Hillcountry and the wheat industry in Lakeland. As a result, Lakeland produces and consumes 25 units of wheat and 150 units of fish per year while Hillcountry produces and consumes 150 units of wheat and 25 units of fish per year. If the political pressure were overcome and trade were to occur, each country would completely specialize in the product in which it has a comparative advantage. If trade were to occur, the combined output of the two countries would increase by

 

50 units of wheat and 50 units of fish.

 

100 units of wheat and 100 units of fish.

 

75 units of wheat and 75 units of fish.

 

125 units of wheat and 125 units of fish.

 

150 units of wheat and 150 units of fish.

Answers

Maurice Tutor
(5)
Status NEW Posted 06 May 2018 03:05 PM My Price 7.00

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