2. Recall our simple model of a city as a trading entity with production of the export good governed by the xed proportions production function: gm = min [5, 5] . (1) (In 0% The equilibrium was described by the following four equations: 9'an = N (2) qc L _ _ u (N? N) u (3) PL PA _ _ t L = _ 4 N ( ) N ( ) 6% 5' Pc = -