X’s production function is x = √(LxKx) Y’s production function is y = √(LyKy) Lj is the amount of labor to produce j. Kj is the amount of capital to produce j. j is X or Y. initial endowment of labor is 400. initial endowment of capital is 400. a is MRT when x =10, b is MRT when y = 100. What is a – b?

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solution The product funetions of x and X La kz and are y VIy ky respec... View the full answer