Tim Headows
New member
Case B
Wheat
(bushels/hour) US=4 UK=1
Cloth
(yards/hour) US= 3 UK=2
6. Using the information for Case B in Table 2.5, assume that labor is the only factor of production and is homogenous (i.e., all of one type).
(a) What is the cost in terms of labor content of producing wheat and cloth in the United States and the United Kingdom?
(b) What is the dollar price of wheat and cloth in the United States if the wage rate is 6 dollars?
(c) What is the pound price of wheat and cloth in the United Kingdom if the wage rate is 1 pound?
If you can give me any idea how to work these problems, I would really appreciate it!
Wheat
(bushels/hour) US=4 UK=1
Cloth
(yards/hour) US= 3 UK=2
6. Using the information for Case B in Table 2.5, assume that labor is the only factor of production and is homogenous (i.e., all of one type).
(a) What is the cost in terms of labor content of producing wheat and cloth in the United States and the United Kingdom?
(b) What is the dollar price of wheat and cloth in the United States if the wage rate is 6 dollars?
(c) What is the pound price of wheat and cloth in the United Kingdom if the wage rate is 1 pound?
If you can give me any idea how to work these problems, I would really appreciate it!