Let€™s redo the trade problem with algebra instead of numbers. Suppose that one unit of labor produces xn apples in the North and xs apples in the South; one unit of labor can also produce zn computers in the North and zs computers in the South. The population of the North is given by Ln and the population of the South by Ls. We assume that xn, xs, zn, zs, Ln, and Ls are parameter values that are fixed numbers.
(a) Autarky: Fill in Table 19.3 using these parameters.
(b) Free trade: Fill in Table 19.4 as well.
(c) In order to have the North specialize completely in producing computers and the South specialize completely in producing apples, the following condition on the parameters must hold:

Explain the intuition for this condition.

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