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Assume Home produces 2 goods, clothing (C) and food (F). Clothing is produced using labor (L) and capital (K), while food is produced using labor
- Assume Home produces 2 goods, clothing (C) and food (F). Clothing is produced using labor (L) and capital (K), while food is produced using labor (L) and land (T). The total supply of labor, capital, and land are 1,200, 1,000, and 1,600, respectively. Labor is mobile across sectors. All markets are competitive. Home's production functions for clothing and food are given by:
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
