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Freedonia has a comparative advantage in the production of tea

07/01/2021 Client: saad24vbs Deadline: 10 Days

The graph needs to be completed as well.


Possible answers:


(Laura or Robert)..has an absolute advantage in the production…..and (Laura, Robert)


Robert’s opportunity cost (5 tons of alfalfa, 2 tons of alfalfa, 4 tons of alfalfa, 3 tons of alfalfa) …..cost of producting (5 tons of alfalfa, 2 tons of alfalfa, 3 tons of alfalfa, 4 tons of alfalfa). Because Robert has a (higher, lower)….Laura, (Robert, Laura)…….production of corn, and (Laura, Robert)




All of the graphs needs to be completed as well.


Freedonia has comparative advantage….(potatoes, neither potatoes nor tea, both potatoes and tea, tea)


Sylvania has a comparative advantage…(potatoes, tea, both potatoes and tea, neither potatoes nor tea).


…the most the two countries can produce is (24 million, 32 million, 4 million, 28 million, 16 million, 2 million, 8 million, 12 million, 20 million) pounds of tea and (32 million, 28 million, 8 million, 2 million, 12 million, 16 million, 24 million, 20 million, 4 million)






Sylvania and Freedonia (would, would not)


Possible answers:




Possible answers: Cassvania and Koopmansville….(differences in resource endowments, differences in tastes, economies of scale)






Graphs should be completed


Possible answers: Based on the prior graph, social welfare in the absence of international trade is ( $120,93,60,30)


When free trade in lemons ….($150,170,210,230). At this price, (240,000, 720,000, 600,000, 960,000) be demanded in Keyna, and (720,000, 600,000, 240,000, 960,0000….Therefore, Kenya will import (240,000, 720,000, 960,000, 600,000)


Without Trade With free trade


Consumer surplus (4.8,60,30,76.8) - ( 4.8, 76.8, 46.8, 60)


Producer surplus (4.8, 60, 76.8, 30) (4.8, 60, 25.2, 76.8)


When Kenya allows free trade…(decrease, increase) by ($30, 76.8, 46.8, 60) million, and producer surplus by ($30, 4.8, 25.2, 60) million. So the net effect…..(loss, gain) of ($25.2, 60, 46.8, 21.6)

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