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7. In Todaroland, workers can either work in agriculture or for multinationals (industry). Wary of bad international press, the multi-nationals are unwilling to pay their
7. In Todaroland, workers can either work in agriculture or for multinationals ("industry"). Wary of bad international press, the multi-nationals are unwilling to pay their workers less than $10/day (they also won't pay more, but that isn't relevant for the problem set). There is linear production in agriculture, and each worker produces $3/day. There are 100 total workers, and multinationals won't hire more than 30 workers 1I am sorry - I suspect that you can do this with pencil and paper way faster than you could with R. 2You should be able to get the article if you are on NYU internet.There are many copies floating around online if you aren't on campus. 1 (and for this particular question, everyone is employed in one of the two sectors). Given this set-up, what is the equilibrium wages and number of workers in agriculture (LA) and multinationals (LM)
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