Question: ii il iv Given output prices, show graphically how the equilibrium wage rate and the allocation of labor between the two sectors is determined. Using

 ii il iv Given output prices, show graphically how the equilibrium

ii il iv Given output prices, show graphically how the equilibrium wage rate and the allocation of labor between the two sectors is determined. Using the production functions, show mathematically how the equilibrium wage rate and the supply curve for each good (C, F) is determined (as a function of output prices). Also, discuss how the returns to land and capital are determined. Using your result in part ii, given output prices, show how an increase in the amount of capital (K) available for production affects: (1)the quantity supplied of each good; (2)the real return to capital; (3)the real return to land; and (4)the real wage rate. Given output prices, show how an increase in food productivity (\"& \") affects the supply (output) of each good and the real return to each input. Given output prices, what happens to the supply of each good, and the real return to each factor, if productivity in both sectors (i.e., A and &) doubles

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