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c. Assume the following parameter values (where * is used to denote numbers for Mexico) a = B = y = 0.5, for Canada and

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c. Assume the following parameter values (where * is used to denote numbers for Mexico) a = B = y = 0.5, for Canada and Mexico L = L* = 200 N = 100 and K = 4 in Canada N* = 4 and K* = 100 in Mexico y.a - Using the equation derived in question (b, Part B): LTV = (1-Y).B 1+ Y.a L. What is the quantity of (1-y).B. labor allocated to TV production (Lrv) in Canada in autarky? - How much labor would be allocated to TB (i.e. what is the value of LTB)? - We know that the return to a factor is always related to the price of the good produced and the marginal product of the factor used in production of the good. Can you use this to determine, the real wages ( W W PTV PTB -) and the real returns to capital (-) and land ( ) in Canada in autarky? PTV PTV

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