Question: Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreigns unit labor requirement in

Home is as described in problem 1. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in banana production it is 1.
a. Graph Foreign’s production possibility frontier.
b. Construct the world relative supply curve.

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a The production possibility curve is linear with the intercept on the apple axis equal to 160 800... View full answer

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