2. ( Heckscher-Ohlin Model) There are two economies, Home and Foreign producing 2 goods, furniture (F) and cosmetics (C), using capital (K ) and labor (L). Furni- ture production is relatively more capital intensive than the production of cosmetics. The production functions for both goods satisfy the assumptions of constant returns to scale and diminishing returns to a single factor. Both economies share the same production technologies and consumers in all countries have identical homothetic pref- erences. Home has 600 units of capital and 400 units of labor while Foreign is endowed with 100 units of capital and 300 units of labor. Both factors can move freely across sectors. The world economy is currently under autarky. (a) Characterize an autarky equilibrium for Home. (b) Which country is relatively more labor-abundant? 2[c] Draw a possible PPF for Home and a separate one for Foreign. Put quantity of production in clothing Qg on the x-axis and quantitj,r of production in clothing Q}: on the yaxis. What are the possible production and consumption points in each countr\