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4. Hockscherahlin: Consider an economy with two goods {corn and potatoes]. hod1 produced using capital and labor. Both factors can freely move across sectors. The

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4. Hockscherahlin: Consider an economy with two goods {corn and potatoes]. hod1 produced using capital and labor. Both factors can freely move across sectors. The technologies for the two sectors are given by the following Cobb-Douglas production mctiom: Qc=nEKHLcH Qp=npr"L.-\" with insert. The allocation of labor and capital to the two industries is subject to the resource constraints Lc + L]: = L and Kc + K1: = K where L and K are the aggregate endowments of labor and capital. Prices of corn and potato are denoted by Pr: and Pr. respectively. Prices for capital and labor are denoted by R and W" respectively. Consumers have Leontief preferences, utility flmetion U{Cc, Co) = min{Cc, Ct), meaning that they want to consume the tyre goods in a xed proportion of one-to-one (no substitution). a} If labor and capital markets are perfectly competitive, what are the conditions (two for each sector) relating the amount of each factor employed in a sector to the price of the factor and the price of the product\"? Make sure to base your answer on the provided production functions

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