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3. Assume that production of one computer uses 10.0 units of capital per worker and production of one pair of shoes uses 3.0 units of
3. Assume that production of one computer uses 10.0 units of capital per worker and production of one pair of shoes uses 3.0 units of capital per worker, i.e., Kc=10Lc and Ks=3Ls. There are 398 workers and 1800 units of capital in the economy. Round units to the nearest whole number. (15 pts) a. Solve for the amount of labor and capital used in each industry. Use the two equations above with: Kc + Ks = 1800 and Lc + L5 = 398 b. The country decides to allow immigration. An additional 50 workers immigrate. Capital remains at 1800 units. Determine how much labor and capital are used in each industry. Remember that now Lc + L5 = 448 c. Now allow FDI to increase by 100 so that Kc + Ks = 1900, but no immigration is allowed, so that LC + L5 = 398. d. Briefly explain how the results in b and c are related to the Rybczynski theorem. (no more than 200 words.)
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