Emails us- support@assignmnetanswers.com. Call US

Assignment help 4449

Suppose France needs 4 units of labor to produce 2 unit of cheese (C), and 3 units of labor to produce 2 units of wine (W). Spain needs 3 units of labor to produce 1 unit of cheese, and 4 units of labor to produce 5 units of wine. Assume the marginal productivities of labor are constant in each country. Assume both countries have populations of 90 million.

France has a Cobb-Douglas utility function of U(C,W)=C.3W.7, making its MUc=.3(W/C).7 and MUw=.7(C/W).3

Spain has a Cobb-Douglas utility function of U(C,W)=C.6W.4, making its MUc=.6(W/C).4 and MUw=.4(C/W).6

Throughout the problem, treat Cheese as the good on the X-axis. To make your notation easier, your numbers should be in millions of units when necessary. That is, if the answer to a question is “5 million units,” then write down just “5.” Finally, to facilitate grading, ANSWER IN ORDER AND CIRCLE YOUR ANSWERS.

a.)

Solution:

15% off for this assignment.

Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!

Why US?

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Money Back

If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.