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1. To produce a ton of steel requires 10 labor and 5 capital. To produce a ton of wheat requires 2 labor and 4 capital.
1. To produce a ton of steel requires 10 labor and 5 capital. To produce a ton of wheat requires 2 labor and 4 capital. The home economy has a supply of 240 labor and 240 capital. a. The labor constraint on the economy's production is Qs + Qw= or Qw =-Qs b. The capital constraint is Qs + Qw= or Qw=-Qs c. Which factor constaint is more steeply downward sloping? O A. labor O B. capital O C. neither d. The home production bundle of steel and wheat that fully employs both factors is tons of steel and |tons of wheat
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