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2. Two goods3 Boots (B) and Forestry products (F) are produced in a country. The production of Boots uses Labour (L) and Capital (K) Capital

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2. Two goods3 Boots (B) and Forestry products (F) are produced in a country. The production of Boots uses Labour (L) and Capital (K) Capital is a specic factor and the stock of Capital is xed at KB : 10. The production of Forestry products uses Labour (L) and Land (T). Land is a specic factor and the stock of Capital is xed at TF : 8. Production functions for the goods are as follows: B : KB(2LB ) L Labour is Inpbile between the two industries. The total amount of labour is 1} : 10. LB+LF:L

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