Question: PLS HELP OUT WITH THIS! 4. LONG ANSWER QUESTION [10 + 10 + 10 = 30 POINTS] Consider the world economy consisting of England and

PLS HELP OUT WITH THIS!

4. LONG ANSWER QUESTION [10 + 10 + 10 = 30 POINTS] Consider the world economy consisting of England and mainland Europe, producing two goods, Gin (G) and Tonic (T) using two factors of production, Labor (L) and Capital (K). The production functions for these goods are as follows: QC.- = (LG)1/3 (Kay/3 QT = (MY/3 \"(TY/3 Labor and Capital endowments in England are E = 360 and if = 600. Wage and rental rate of capital are denoted by w and 1' respectively. Assume that all factors are mobile across sectors but within countries and that all markets are perfectly competitive. (1) [10 points] Which one of gin and tonic is capital intensive in its production? Provide detailed explanation using a suitable diagram

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