Ask Question
BusinessBusiness
10 December, 08:29

Suppose that a worker in Tabletland can produce either 4 tablets or 1 television per year, and a worker in Ledville can produce either 2 tablets or 4 televisions per year. Each nation has 50 workers. Also suppose that each country completely specializes in producing the good in which it has a comparative advantage. If Tabletland trades 50 tablets to Ledville in exchange for 50 televisions each year, then each country's maximum consumption of new tablets and televisions per year will be

a) 150 tablets, 50 televisions in Tabletland and 50 tablets, 150 televisions in Ledville.

b) 250 tablets, 50 televisions in Tabletland and 50 tablets, 250 televisions in Ledville.

c) 200 tablets, 0 televisions in Tabletland and 0 tablets, 200 televisions in Ledville.

d) 100 tablets, 100 televisions in Tabletland and 100 tablets, 100 televisions in Ledville.

+5
Answers (2)
  1. 10 December, 09:53
    0
    A) 150 tablets, 50 televisions in Tabletland and 50 tablets, 150 televisions in Ledville.

    Explanation:

    Tabletland's opportunity cost of producing tablets over TVs = 1/4 = 0.25 TVs per tablet

    Tabletland's opportunity cost of producing TVs over tablets = 4/1 = 4 tablets per TV

    Ledville's opportunity cost of producing tablets over TVs = 4/2 = 2 TVs per tablet

    Ledville's opportunity cost of producing TVs over tablets = 2/4 = 0.5 tablets per TV

    This means that Tabletland has a comparative advantage in the production of tablets and Ledville in the production of TVs.

    Tabletland should produce = 50 x 4 tablets = 200 tablets per year Ledville should prodcue = 50 x 4 TVs = 200 TVs per year

    After trade:

    Tabletland will have 150 tablets and 50 TVs Ledville will have 150 TVs and 50 tablets
  2. 10 December, 11:45
    0
    The correct option is A.

    Explanation:

    Tabletland will be producing either 200 tablets or 50 television per year, and a Ledville can produce 100 tablets or 200 television.

    If tabletland is exchanging 50 tablets for 50 television they will have 150 tablets and 50 television. And led ville will have 150 televisions and 50 tablets.

    The answer is "A", 150 tablets, 50 television in tablet land and 50 tablets, 150 television in Ledville.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose that a worker in Tabletland can produce either 4 tablets or 1 television per year, and a worker in Ledville can produce either 2 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume that business solutions accounts receivable balance at june 30, 2018, is $20,250 and that one account of $100 has been written off against the allowance for doubtful accounts since march 31, 2018. if s.
Answers (1)
If an organization's competitive strategy relies on long-term relationships with the clients who purchase the organization's goods and services, the organization should reward its employees from its executives to its sales staff with incentives
Answers (1)
Lars runs a cookie factory. His cookies are made with sugar, peanut oil, and soybean oil. The number of boxes of cookies that he produces is y =
Answers (1)
The difference between economic profit and accounting profit is that economic profit is calculated based on both implicit and explicit costs whereas accounting profit is calculated based on explicit costs only. a. TRUE b. FALSE
Answers (1)
n the summer there are many teenagers looking for minimum wage jobs, so firms are able to fill all open positions easily. This suggests that, at least during the summer, the supply of labor is:
Answers (1)
New Questions in Business
Ncua what is their purpose
Answers (1)
A medical clinic performs three types of medical tests that use the same machines. tests a, b, and c take 15 minutes, 30 minutes, and 1 hour, respectively, with respective profits of $110, $240, and $490.
Answers (1)
Roger consumes no commodities other than Miller Lite and Bud Light. His annual budget for these two commodities is described by the equation 5 x + 25 y = 300, where x is sixpacks of Miller Lite and y is cases of Bud Light.
Answers (1)
what is the best place to obtain a masters degree! A) community college. B) public high school. C) trade school. D) university
Answers (1)
A three-line-to-eight line decoder has inputs cba where the a input is the lsb (least significant bit). the output and gates are labeled q0 through q7. one would normally expect the output of and gate q4 to be active when the inputs are:
Answers (1)
Home » Business » Suppose that a worker in Tabletland can produce either 4 tablets or 1 television per year, and a worker in Ledville can produce either 2 tablets or 4 televisions per year. Each nation has 50 workers.
Sign Up Forgot Password?