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Consider the productivity table below:

a. Which country has an absolute advantage at making rotids?

Number of Hours to Make One Rotid Number of Hours to Make One Tauron

Mandovia 50 100
Ducennia 150 20


b. Using the information in the productivity table above, estimate the opportunity cost of making rotids and taurons in Mandovia and Ducennia.
c. There are 1 billion hours of labor available for making products in Mandovia, and 2 billion hours of labor available for making products in Ducennia. In a no-trade world, let’s assume that half the labor in each region gets used to make each product.

Answer :

Answer:

The following are the solution to the given question:

Explanation:

In option a:

The Mandovi's absolute benefit in this issue is that so many ratios are produced and transform because less power is spent than Ducennia (50 -100 compounds to 150 -200).

In option b:

[tex]\left\begin{array}{ccc} \text{ O.C}&\text{Per.Ratid}&\text{Per Tauron} \\\text{Mandovia}&\text{0.5\ Tauron}&2 \ Rotid\\\text{Ducennia}&\text{ 0.75\ Tauron}& 1.33 \ Rotid \end{array}\right[/tex]

In option c:

[tex]\left \begin{array}{cccc}1& \text Rotids \ ou tput} &\text Taurous \ ou tput}\\ \text{Mandovia }& 10 \ M&5 M\\\text{Ducennia}& 6.7 \ M&5 M \\\text{Total}& 16.7 \ M&10 M\end{array}\right[/tex]

There are a total of 1 billion labours are available for the equally divided for 0.5 billion and 0.5 billion  for both and the Rotiods is[tex]\frac{0.5}{50} = 0.01 \ \ billion[/tex]

and for taurous = [tex]\frac{0.5}{100}-0.005\ \ billion[/tex].

There is Rotiods is 0.5/50 = 0.01 billion and also for taurous = 0.5/100-0.005 billion

Total  Rotids output   16.7 M                          

Total  Taurous output           10 M

Calculation of opportunity cost

Given details as per query

Choice a is:

When The Mandovi's fundamental benefit in this issue is that so many ratios are produced and changed because less force is spent than Ducennia (50 -100 combinations to 150 -200).

Option b is:

O.C                    Per. Rotids             Per Tauron

Mandovia            0.5 Tauron            2 Rotid

Ducennia             0.75Tauron          1.33 Rotid

In option c:

   1                           Rotids output       Taurous output

Mandovia                      10 M                          5 M

Ducennia                     6.7 M                           5 M

                                                                                         

The Total                        16.7 M                          10 M

c. When There are a totality of 1 billion laborers are unrestricted for the equally separated for 0.5 billion and 0.5 billion for both and the Rotiods is 0.5/50 = 0.01 billion and also for taurous = 0.5/100-0.005 billion

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