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SUPPOSE THE US AND JAPAN HAVE THE FOLLOWING PRODUCTION

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SUPPOSE THE US AND JAPAN HAVE THE FOLLOWING PRODUCTION

Problem 2 (40 points) Suppose the US and Japan have the following production possibility tables (final output combinations):

Japan United States
Bolts of Cloth Tons of Wheat Bolts of Cloth Tons of Wheat
1000 0 500 0
800 100 400 200
600 200 300 400
400 300 200 600
200 400 100 800
0 500 0 1000
1000 0 500 0

a. Draw each country’s production possibility curve.
b. In what good does the United States have a comparative advantage? What about Japan?
c. Is there a possible trade that benefits both countries? If there are several such possible situations, please discuss ONLY one.
d. Please demonstrate your answer to point c above graphically (be sure to properly label your graph).


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  • Title: SUPPOSE THE US AND JAPAN HAVE THE FOLLOWING PRODUCTION
  • Price: £ 99
  • Post Date: 2018-11-08T11:29:31+00:00
  • Category: Assignment
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SUPPOSE THE US AND JAPAN HAVE THE FOLLOWING PRODUCTION SUPPOSE THE US AND JAPAN HAVE THE FOLLOWING PRODUCTION
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