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  3. wh laa answer questions 3 through 6 based on the...

Question: wh laa answer questions 3 through 6 based on the...

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wh. laa Answer questions 3 through 6 based on the following information: There are two countries, Home and Foreign, in a hypothetical world. Each of these two countries are Ricardian economies. Each country is endowed with 100 labor hours. Each country can use labor to produce two goods, cheese and car. The following table shows labor requirements per unit of each good in each country. Perfect competition prevails everywhere in the two-country world. Suppose that w and w represent Homes and Foreigns hourly wage rates, respectively. uctHomeForeign aLY-0.5 Table 1: Labor hours per unit of outputs Cheese (X) aLx2 Car (Y)

3. The marginal cost of cheese is in Home. B) 2w C) 0.5w D) 4w 4. The marginal cost of cheese is in Foreign B) 2w C) 0.5w D) 4w 5. The marginal cost of car is in Home. B) 2w C) 0.5w D) 4w 6. The marginal cost of car is in Foreign B) 2w C) 0.5w D) 4w

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