Question: us uk wheat bushels laborhour 4 2 cloth yards labor...
|Wheat (bushels/ labor-hour)||4||2|
|Cloth (yards/ labor- hour)||2||1|
a. express the cost of producing wheat and cloth in the U.S. and in the U.K. in terms of labor content
b. find Pc/Pw for both the U.S. and the U.K. in the absence of trade
c. express the limits for mutually advantageous trade in terms of Pc/Pw. What does this result indicate?