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Use the specific-factors model to answer question Assume that there are two industries, agriculture and manufacturing The agricultural industry uses labor and land as inputs while

Use the specific-factors model to answer question 1. Assume that there are two industries, agriculture and manufacturing. The agricultural industry uses labor and land as inputs while the manufacturing industry uses labor and capital as inputs. The production function for each qood is as follows: Agriculture Production Function Labor Land 20 20 20 20 20 20 Manufacturing Production Function Manut Capital 20 Labor 20 ?? ?? ?? a. Assume that the economy has 6 workers. Assume that each industry can only employ whole workers, not partial workers. Calculate the possible combinations of agricultural output and manufacturing output below. Labor Agric. Mfr Output Agric Mfr. MPLA MPLY PPF slope

Apr 01 2020 View more View Less

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