Consider a Specific-factors model where Home produces two goods M and A, using capital and land, respectively. Suppose under free-trade, ?? = ?? in equilibrium. Assume Home has ?? = 10 workers. Home's marginal product of labor in both industries are: ???? = 5 ??? ???? = 10 ??? a. Compute real wage in terms of A b. Suppose ?? = 20 due to immigration, calculate the number of workers in each industry. c. Who gains from immigration?

Specific-factor model Consider a Specific-factors model where Home produces two goods M and A, using capital and land, respectively. Suppose under free-trade, Py, = P, in equilibrium. Assume Home has L = 10 workers. Home's marginal product of labor in both industries are: MPL,, = % M MPL, = 2 74 a. Compute real wage in terms of A b. Suppose L = 20 due to immigration, calculate the number of workers in each industry. c. Who gains from immigration