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1.what is the wage rate in service?(the answer is 22.5,can you explain?) 2.what is the capital rental price in services? 3. what is the wage
1.what is the wage rate in service?(the answer is 22.5,can you explain?)
2.what is the capital rental price in services?
3. what is the wage rate in manufacturing?
4.what is the price of products?
Consider a 2x2 specific-factors model, where capital can move across industries freely while labour in the two industries are the specific factors. The table below lists the information on the domestic production in autarky. Answer questions based on the information. The price of manufacturing good, Pm, is normalized to 1 throughout the question. $1.000.000 $500.000 400 500 Manufacturing Total Sales revente Total payment to labour Amount of labour Total payment to capital Amount of capital Services Total Sales revenue Total payment to labour Amount of labour Total payment to capital Amount of capital $1.000.000 $800.000 500 Calculate the value of the following variables in autarky. Fill in the blanks for the next four questions. Write "n/a" in the cell if there is not enough information to calculate. Consider a 2x2 specific-factors model, where capital can move across industries freely while labour in the two industries are the specific factors. The table below lists the information on the domestic production in autarky. Answer questions based on the information. The price of manufacturing good, Pm, is normalized to 1 throughout the question. $1.000.000 $500.000 400 500 Manufacturing Total Sales revente Total payment to labour Amount of labour Total payment to capital Amount of capital Services Total Sales revenue Total payment to labour Amount of labour Total payment to capital Amount of capital $1.000.000 $800.000 500 Calculate the value of the following variables in autarky. Fill in the blanks for the next four questions. Write "n/a" in the cell if there is not enough information to calculateStep by Step Solution
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