You Are Given the Following Classical-Type Table Showing the Output

question 24

Multiple Choice

You are given the following Classical-type table showing the output of 10 days labor in the production of each of the two commodities in each of the two countries. Assume that The U.K. worker's wage is £30 per day and that the fixed exchange rate is $2 = £1.
$\begin{array}{lll}&\underline{\text { Food }}&\underline{\text { Clothing }}\\\\\text { United States } & 30 \text { units } & 30 \text { units } \\\text { United Kingdom } & 20 \text { units } & 15 \text { units }\end{array}$

If trade is taking place between the two countries, what is the "upper limit" to the U.S.Worker's wage per day?

• A) $30
• B) $40
• C) $90
• D) $120

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Definitions:

Wholesalers

Entities that sell products in large quantities, typically to retailers or other intermediaries, rather than to the final consumer.

Distribution Channel

refers to the path or route through which goods and services travel from the producer to the final user or consumer.

Merchant Wholesalers

Businesses that buy goods in large quantities from manufacturers and resell them in smaller quantities to retailers.

Catalog Retailers

Companies that sell products through printed or online catalogs, allowing customers to shop remotely.