Homework SourseConsider two countries Caledonia and Scotia If Caledonia put
Consider two countries, Caledonia and Scotia. If Caledonia puts all its resources in production of meat, they can produce 100 tons of meat; if puts all its resources in production of milk, they can produce 40 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant. If Scotia puts all its resources in production of meat, they can produce 40 tons of meat; if puts all its resources in production of milk, they can produce 100 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant.
1. If Caledonia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Caledonians consume?
2. If Scotia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Scotians consume?
Consider two countries, Caledonia and Scotia. If Caledonia puts all its resources in production of meat, they can produce 100 tons of meat; if puts all its resources in production of milk, they can produce 40 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant. If Scotia puts all its resources in production of meat, they can produce 40 tons of meat; if puts all its resources in production of milk, they can produce 100 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant.
1. If Caledonia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Caledonians consume?
2. If Scotia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Scotians consume?
Consider two countries, Caledonia and Scotia. If Caledonia puts all its resources in production of meat, they can produce 100 tons of meat; if puts all its resources in production of milk, they can produce 40 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant. If Scotia puts all its resources in production of meat, they can produce 40 tons of meat; if puts all its resources in production of milk, they can produce 100 tons of milk; the opportunity cost of producing meat (in terms of forsaken milk) is constant.
1. If Caledonia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Caledonians consume?
2. If Scotia, as an autarky, puts half of its resources in production of meat, and half in production of milk, how much meat and milk will the Scotians consume?
Solution
a) If Caledonia uses half of its resources to produce milk and half to produce meat they will produce 50 tons of meat and 20 tons of milk.
b) In Scotia half of the resources are used to produce milk and half in the meat they will produce 20 tons of meat and 50 tons of milk.
