Question: 1. Use the specificfactors model to answer question 14 Assume that there are two industries, agriculture and manufacturing. The agricultural industry uses labor and. land






1. Use the specificfactors model to answer question 14 Assume that there are two industries, agriculture and manufacturing. The agricultural industry uses labor and. land as inputs while the manufacturing industry uses labor and capital as inputs. The production function for each good is as follows: Agriculture Production Function Land Labor Q3 20 O 0 20 l 18 20 2 33 20 3 45 20 4 54 20 5 60 20 6 63 Manufacturing Production Function Capital Labor QM 20 0 0 20 l 18 20 2 33 20 3 45 20 4 54 20 5 60 20 6 63 \fe. Suppose that PM/PA = .75. How many agricultural and manufacturing workers will be employed? Draw a price line on your PPF graph in part b showing this output combination
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