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3. Southern Ireland uses animal livestock, cows c and sheep s, in addition to labor l, to produce butter b and wool w. Because they
3. Southern Ireland uses animal livestock, cows c and sheep s, in addition to labor l, to produce butter b and wool w. Because they are constrained by grazing land, the production functions for butter b and wool w are: b = (c* lb)1/2 w = (s * lu)1/2 Assume there are 4 million cows and 6 million sheep so that c = 4 and s = 6. Ireland has 2 million agricultural laborers / = 2 = lb + lw a. Draw the production possibility frontier for butter and sweaters by varying labor allocated to each industry. Be sure to label the axes and where the PPF intersects each axis
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