Let M and E represent electronics and medical devices, respectively. There are two countries, the United...

 

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Let M and E represent electronics and medical devices, respectively. There are two countries, the United States and China, with the following functions and labor endowments: US: = 5, = 10, += 100 China: = 2, = 2, += 200. Suppose that the utility function for each worker in each country is the same and given by (,) = 1/3 n() + 2/3 n(). Draw the autarky equilibrium (i.e., a point for production and consumption) and the indifference curve in the PPF for the US. Let M and E represent electronics and medical devices, respectively. There are two countries, the United States and China, with the following functions and labor endowments: US: = 5, = 10, += 100 China: = 2, = 2, += 200. Suppose that the utility function for each worker in each country is the same and given by (,) = 1/3 n() + 2/3 n(). Draw the autarky equilibrium (i.e., a point for production and consumption) and the indifference curve in the PPF for the US.

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