Question: This question is based on Heckscher-Ohlin (HO) Model. Suppose two units of capital (2K) and two units of labor (2L) are required to produce one

This question is based on Heckscher-Ohlin (HO) Model.

Suppose two units of capital (2K) and two units of labor (2L) are required to produce one unit of

commodity Y and three units of capital (3K) and twelve units of labor (12L) are required to produce

one unit of X.

Plot capital (K) along the vertical axis of a graph and labor (L) along the horizontal axis, and

production takes place along a straight-line ray from the origin. What would be the capital-labor ratio

(K/L) in the production of the commodity Y and X and which commodity is capital intensive.

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