# Consider a world consisting of two countries, iceland (a) which

Consider a world consisting of two countries, Iceland and Finland. Finland has L=300 units of labor and Iceland has L*=100 units of labor, the only input. There are two goods – fish (F) and video games (V). In Finland: MPLF=1/2 and MPLV=1/4, in Iceland: MPL*F=1/2 and MPL*V=1/2.

Consider a world consisting of two countries, Iceland and Finland. Finland has L=300 units of labor and Iceland has L*=100 units of labor, the only input. There are two goods – fish (F) and video games (V). In Finland: MPLF=1/2 and MPLV=1/4, in Iceland: MPL*F=1/2 and MPL*V=1/2.

(a) Which country has an absolute advantage in which good(s)?

(c) What is the opportunity cost of producing fish in Finland (Iceland)? What is the opportunity cost of producing video games in Finland (Iceland)?

(b) Which country has a comparative advantage in which good?

(d) Draw the production possibilities frontier for each country. What are the production opportunity and autarky consumption opportunity sets in each country?

(e) Draw the relative supply of fish (F/V) curve for each country.

(f) Assume that each country has the same downward-sloping relative demand for fish curve. What is the autarky equilibrium relative price of fish in each country?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.