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Consider a countrx,r that produces chairs and teapots in the longrun {HeckscherOhlin) with no factor substitution. The graph below shows labor and capital constraints for
Consider a countrx,r that produces chairs and teapots in the longrun {HeckscherOhlin) with no factor substitution. The graph below shows labor and capital constraints for the production of these two goods. Chairs {QC} are on the xaxis and teapots [QT] are on the yaxis. QT Capital Constraint ./ 1000 Labor Constraint 400 / Q 300 900 Use this to answer the questions below. Question 3 Consider the constraints shown above. What is the maximum amount of chairs that can be produced in this economy? 0 300 o 400 O 900 O 1000 Consider the constraints shown above. Which of these goods is labor intensive? O Chairs O Teapots O Both O Neither
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