There are two economies. Economy A is dominated by the self-driving cars, which has the following...

 

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There are two economies. Economy A is dominated by the self-driving cars, which has the following production function: The production function of the self-driving car industry is: Y = K (min{2H,7L}), where K represents capital, H represents high-skilled labor, and L represents low- skilled labor. Economy B is dominated by the agriculture industry, which has the following pro- duction function: Y = K (4H+3L), where as before K represents capital, H represents high-skilled labor, and L repre- sents low-skilled labor. Suppose an immigration policy in each economy increased the intake of low-skilled immigrants rapidly. In the short run, how would it affect the wage of high-skilled workers in each economy? There are two economies. Economy A is dominated by the self-driving cars, which has the following production function: The production function of the self-driving car industry is: Y = K (min{2H,7L}), where K represents capital, H represents high-skilled labor, and L represents low- skilled labor. Economy B is dominated by the agriculture industry, which has the following pro- duction function: Y = K (4H+3L), where as before K represents capital, H represents high-skilled labor, and L repre- sents low-skilled labor. Suppose an immigration policy in each economy increased the intake of low-skilled immigrants rapidly. In the short run, how would it affect the wage of high-skilled workers in each economy?