Suppose that there are 20,000 hours of labor available in country a, and that 5 hours of labor are required to produce one unit of s, while 4 hours are required to produce one unit of t. draw a's ppf and find its slope. what is the relative price of s to t (ps/pt)?

PPF attached file

relative price of S yo T 1.2

slope 0.8 (Pt in the X axis)

Explanation:

We should calculate the ouput at at P(t) = 0

and at P(s) = 0

Pt = 0 then 20,000 are allocated to produce product S therefore 20,000/ 5 = 4,000 max cappacity to produce Ps

Ps = 0 all the hour are assinged to Pt 20,000/4 = 5,000

To find the slope when Pt is in the X axis we do:

-4/5 = -0.8 each unit of T decrease output of S by 0.8

while a unit of S decrease output of T by 5/4 = 1.2

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this

answer; capital structure decision;