6. An application of the specific factor model (20 points). Hangzhou city in Zhejiang Province and Nanjing city in Jiangsu Province share a similar industry structure and are always in competition. Let's suppose Hangzhou and Nanjing both produce a single product Producing the product requires two factors: capital and labor. The capital supply in each city and the technology of production are exactly the same. The marginal product of labor in each city depends on employment as follows Number of Workers Employed Marginal Product of Worker 20 19 2 3 4 S 6 18 11 16 13 14 12 12 11 110 S 9 10 11 Initially, there are 1l workers employed in Nanjing, but only 3 in Hangzhou. a What is the effect of free movement of labor from Nanjing to Hangzhou on employment, production, real wages and the income of capital owners in each city? b. assume now that Hangzhou limits immigration so that only 2 workers can move there from Nanjing. Calculate how the movement of these two workers affects the income of four different groups: 61. Workers who were iginally in Hangzhou 62. Nanjing capital owners 63. Workers who stay in Nanjing 14. The workers who do move 6. An application of the specific factor model (20 points). Hangzhou city in Zhejiang Province and Nanjing city in Jiangsu Province share a similar industry structure and are always in competition. Let's suppose Hangzhou and Nanjing both produce a single product Producing the product requires two factors: capital and labor. The capital supply in each city and the technology of production are exactly the same. The marginal product of labor in each city depends on employment as follows Number of Workers Employed Marginal Product of Worker 20 19 2 3 4 S 6 18 11 16 13 14 12 12 11 110 S 9 10 11 Initially, there are 1l workers employed in Nanjing, but only 3 in Hangzhou. a What is the effect of free movement of labor from Nanjing to Hangzhou on employment, production, real wages and the income of capital owners in each city? b. assume now that Hangzhou limits immigration so that only 2 workers can move there from Nanjing. Calculate how the movement of these two workers affects the income of four different groups: 61. Workers who were iginally in Hangzhou 62. Nanjing capital owners 63. Workers who stay in Nanjing 14. The workers who do move