Order the answer to: Assume that Freeland could produce…
| Question | Assume that Freeland could produce 8 units of X and no Y, 16 units of Y and no X, or any linear combination in between, and Braveburg could produce 32 units of X and no Y, 48 units of Y and no X, or any linear combination in between. a. What is the of producing X in Freeland? In Braveburg? b. If Freeland and Braveburg specialize according to comparative advantage, which directions will goods flow in trade? c. If trade occurs, what will the terms of trade between X and Y be? d. How large would transactions costs, transportation costs, or tariffs have to be to eliminate trade between Freeland and Braveburg? |
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| Subject | business-economics |
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