=+produce only one good. The land supply in each country and the technology of production are exactly

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=+produce only one good. The land supply in each country and the technology of production are exactly the same. The marginal product of labor in each country depends on employment as follows:

Number of Workers Employed Marginal Product of Last Worker 1 20 2 19 3 18 4 17 5 16 6 15 7 14 8 13 9 12 10 11 11 10 Initially, there are 11 workers employed in Home, but only 3 workers in Foreign.

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International Economics

ISBN: 9780132146654

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

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