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2. There are two main regions in the country of Ruritania, cast (E) and west (W). The country produces both corn (c) and soybeans (s)
2. There are two main regions in the country of Ruritania, cast (E) and west (W). The country produces both corn (c) and soybeans (s) in each region. Production functions in the east are given by CE = 11/2 SE= 11/2 Where I, and I are the amount of labor devoted to each industry, and total labor available in the each is limited to 100: ( + , = 100. In the west, the production functions are a bit different due to different weather patterns: CW 1 SW = - /2 There are also 100 units of labor available on the west coast be + , = 100. a. Calculate the production possibilities curves for both the cast and the west.b. What condition must hold if production in Ruritania is to be al- located efficiently in the cast and west? Assume that labor is not mobile, or, that it can't move from east to west or vice versa. c. Calculate the production possibility frontier for Ruritania (again as- suming labor is not mobile). What is possible for national soybean production if total corn production is 12
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