2. An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:

Labor Input to Good 1 Output of Good 1 Labor Input to Good 2 Output of Good 2 0

10 20 30 40 50 60 70 80 90 100 0.0 25.1 38.1 48.6 57.7 66.0 73.6 80.7 87.4 93.9 100 0

10 20 30 40 50 60 70 80 90 100 0.0 39.8 52.5 61.8 69.3 75.8 81.5 86.7 91.4 95.9 100