Given the Following Classical-Type Table Showing the Fixed Money Prices

question 22

Multiple Choice

Given the following Classical-type table showing the fixed money prices of each good in each of the two countries:
$\begin{array} { l c c } & \underline{\text { Shoes } }&\underline{ \text { Wine} } \\\\\text { United States } & \text { \$20/pair } & \text { \$10/bottle } \\\text { Switzerland } & 100 \text { francs/pair } & 40 \text { francs/bottle }\end{array}$
If the exchange rate is flexible, the upper limit to the price of the dollar (i.e., the number of Swiss francs per dollar above which there is export of both goods by Switzerland) is

• A) 5 francs = $1.
• B) 4 francs = $1.
• C) 0.25 francs = $1.
• D) 0.20 francs = $1.

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Definitions:

Probability Model

A mathematical representation of a random phenomenon, defined by a sample space, events within the sample space, and probabilities associated with each event.

Fair Dice

A perfectly balanced dice where each outcome has an equal chance of occurring, ensuring unbiased results in games of chance.

Sum Greater

A condition or outcome where the total quantity or amount exceeds a specified reference point or comparison amount.

Probability Model

A mathematical representation that assigns probabilities to different outcomes in a random experiment.