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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.
 Food  Clothing  United States 30 units 30 units  United Kingdom 20 units 15 units \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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