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Assume that preferences in a country are given by H (X, Y) = X12 Y1. Technology is described by X = L and Y =
Assume that preferences in a country are given by H (X, Y) = X1\"2 Y1\". Technology is described by X = L and Y = 2L where L is labor. Assume that wages are 1 and the country is endowed with 10 units of labor. Obtain e) In the long term, how much of each good will the country consume? f) What are the exports and imports of each good in this long-term equilibrium? g) What is the level of utility under free trade? Is it higher or lower than under autarky
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