China and the U.S. both produce two goods: tradable cellular phones, and non-tradable haircuts. Each good is produced in competitive markets in a single process. Workers receive the marginal productivity for their labor. There are no trade costs for cellular phones, while for haircuts they are prohibitively high. The wage for per hour work is RMB (Yuan) in China and dollars in U.S.. Suppose that, in one hour, a Chinese laborer produces 3 cell phones and an American laborer produces 15 cellular phones, while one laborer produces only one haircut in both countries. Suppose the price of a cellular phone is 2 RMB. Let be the nominal exchange rate of RMB per dollar. If , what is the price of a cellular phone in dollars?
A0.8
B0.5
C0.4正確答案
D0.3
答案與詳解
