Question
Consider a Heckscher-Ohlin framework where all factors are freely mobile and an autarkic country called the Magnificent Commonwealth Union (or the MCU for short) produces
Consider a Heckscher-Ohlin framework where all factors are freely mobile and an autarkic country called the Magnificent Commonwealth Union (or the MCU for short) produces two kinds of movies: Blockbusters (denoted by B) and Fillers (denoted by F). Making a movie requires two inputs, visual artists (denoted by V ) and actors (denoted by A). To produce a Blockbuster the MCU needs to use five visual artists per actor, VB/AB = 5. To produce a Filler the MCU needs to use one visual artist per actor, VF /AF = 1. Suppose there are 2,000 visual artists and 500 actors in MCU. One movie requires fifteen actors and the corresponding number of visual artists depending on whether it is a Blockbuster or a Filler (e.g., one Blockbuster requires 15 actors and 75 visual artists).
3.1 How many Blockbusters will the MCU make?
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