Producing one yard of cloth requires 1 worker and 3 acres of land, while producing one...

  

 

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Producing one yard of cloth requires 1 worker and 3 acres of land, while producing one pound of food requires 1 worker and 4 acres of land. Both countries have 50 workers; the United States has 160 acres of land, while ROW has 180. The price of food is always $36/pound; the price of cloth is $30/yard in the United States in autarky and $33/yard in both countries under free trade. Compare the relative production of cloth to food across countries. Draw graph of factor constraints here, with food on the vertical axis. Indicate values for the endpoints and for the quantities produced in each country. 0 Construct the pricing equation for food (same always for both countries). Construct the U.S. pricing equation for cloth in autarky. Determine U.S. factor prices in autarky that allow both goods to be priced at cost. Producing one yard of cloth requires 1 worker and 3 acres of land, while producing one pound of food requires 1 worker and 4 acres of land. Both countries have 50 workers; the United States has 160 acres of land, while ROW has 180. The price of food is always $36/pound; the price of cloth is $30/yard in the United States in autarky and $33/yard in both countries under free trade. Compare the relative production of cloth to food across countries. Draw graph of factor constraints here, with food on the vertical axis. Indicate values for the endpoints and for the quantities produced in each country. 0 Construct the pricing equation for food (same always for both countries). Construct the U.S. pricing equation for cloth in autarky. Determine U.S. factor prices in autarky that allow both goods to be priced at cost.

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