One billion hours of labor are available for making products in Mandovia, and 2 billion hours of labor are available for making products in Ducennia. In a no-trade world, let’s assume that half the labor in each country gets used to make each product. Calculate the output of rotids and taurons, rounding to one decimal place.

Mandovia

Rotid

Mandovia total labor hours is 1 billion which is to be divided equally to make one product so 500 million hours per product. It takes 50 hours to make one rotid so with 500 million;

= 500,000,000/50

= 10,000,000 rotids

Taurons

= 500,000,000/100

= 5,000,000 taurons

Ducennia

Rotids

Ducennia total labor hours is 2 billion which is to be divided equally to make one product so 1 billion hours per product. It takes 150 hours to make one rotid so with 1 billion hours will be;

= 1,000,000,000/150

= 6,666,666.7

= 6.7 million rotids

Taurons

= 1,000,000,000/20

= 50,000,000 taurons

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