In Home and Foreign there are two factors each of production, land, and labor used to produce only one good. The land supply in each country and the technology of production are exactly the same. The marginal product of labor in each country depends on employment as follows:
Number of Workers Marginal Product
Employed of Last Worker
1 ........ 20
2 ........ 19
3 ........ 18
4 ........ 17
5 ........ 16
6 ........ 15
7 ........ 14
8 ........ 13
9 ........ 12
10 ........ 11
11 ........ 10
Initially, there are 11 workers employed in Home, but only 3 workers in Foreign. Find the effect of free movement of labor from Home to Foreign on employment, production, real wages, and the income of landowners in each country.