Question
An economy with no foreign trade produces jackets and pants. There are 14 workers in the jackets industry and 26 workers in the pants industry.
An economy with no foreign trade produces jackets and pants. There are 14 workers in the jackets industry and 26 workers in the pants industry. The marginal product of workers in the jackets industry, measured in jackets produced per day, is 20 - NS, where NS is the number of workers employed in the jackets industry. The marginal product of workers in the pants industry, measured in pants produced per day, is 30 ND, where ND is the number of workers employed in the pants industry.
a) Initially, jackets sell for $40 each and pants are $60 each. Find the equilibrium wage in each industry
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