1.IttakesonehourtotravelfromNewYorkCitytoWashington,D.C.,byair,butittakesfivehoursbybus.Iftheairfareis$110andthebusfareis$70,whichwouldbecheaperforsomeonewhoseopportunitycostoftraveltimeis$6perhour?Forsomeo

Question

1.It takes one hour to travel from New York City to Washington,D.C.,by air,but it takes five hours by bus.If the airfare is $110 and the bus fare is $70,which would be cheaper for someone whose opportunity cost of travel time is $6 per hour?For someone whose opportunity cost is $10 per hour?$14 per hour?
2.What is the law of comparative advantage?According to the law of comparative advantag,what should be the distinguishing characteristics of goods a nation imports?How will international trade influence people's production levels and living standards?Explain

Answer 1

6*(5-1)+70=94