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l. (25 points) Consider two countries, A and B, each producing two goods, cloth and grain, with constant marginal costs and a single production factor, labor. A has 100 workers, each of whom can produce either 8 bolts of cloth per month or 120 bushels of grain. B has 300 workers, each of whom can produce either 3 bolts of cloth (denoted by C) per month or 20 bushels of grain (denoted by G)? a. In two separate diagrams, graph the PPFs for both countries, putting cloth on the horizontal axis. What is the marginal rate of transformation (MCc/MCG) in each country? b. Using indifference curves, illustrate the autarky equilibrium for each country, assuming that each country prefers to spend half of its income on the consumption of each good. In autarky, what is the price ratio (PC/Pa) in each country? Which country has the higher real wage rate? c. What are the minimum and maximum price ratios that are consistent with free trade equilibrium? (1. Suppose these two countries llly specialize, and choose to trade 500 bolts of cloth for 5000 bushels of grain. Illustrate m free trade equilibrium for both countries