Business, 19.09.2019 00:00 gmc2771

Gg. which good will the home country export? what is the quantity of its exports? h. which good will the home country import? what is the quantity of its imports? i. calculate the real wage in the home country in terms of wheat both before and after trade. j. calculate the real wage in the home country in terms of cloth both before and after trade. k. suppose the relative price of wine increases from .8 to 1. what effect will this have on home country’s utility (increase, decrease or no change)? what effect will this have on foreign country’s utility (increase, decrease or no change)? l. assuming the values of the marginal products at the beginning of the problem, and assuming that relative price of wine is equal to one, calculate the relative wage between the two countries (w/w*).

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Gg. which good will the home country export? what is the quantity of its exports? h. which good wi...

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