1. (Specific Factor Model, Chapter 3) In the "simple" version of the specific factor model, there are two sectors (goods), one factor (labor) that is perfectly mobile between the two sectors, and onefixed - or specific - factor in each sector. To be concrete, suppose the two goods are food and clothing, the specific factor in food is "land" - represented by "T", and the specific factor in clothing is "capital", represented by "K". The production functions for each sector are given by: C=1(K) (L. ) ; F=0(T) ? (L )12 "; 0>0; resource constraint: Le + Ly = L where C, F are the outputs of clothing and food, Le, L are labor employed in clothing and food, respectively, and "L" is the total available labor available in the economy. "O" and " 1 " are productivity factors, so an increase in O (in 2 ) represents an increase in productivity in food (clothing) production