Question: Consider an autarky Specific Factors model with two goods: x and Y . Labor is mobile. K x = 1 is specific to industry x
Consider an autarky Specific Factors model with two goods: and Labor is mobile. is specific to industry and is specific to industry There are units of labor in the economy. Production functions are as follows:
If the utility function is what is the value of at which in equilibrium?
a
b
c
d
e
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