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Consider the following table that describes the marginal products of labor for 2 goods (apples and oranges) and the total units of labor in a
Consider the following table that describes the marginal products of labor for 2 goods (apples and oranges) and the total units of labor in a home and foreign country. MPL Apple MPL Orange Units of L Home 6 100 00 00 Foreign 10 50 Due to a bacteria in the Home country the marginal productivity of labor in apples in the home country falls to 4 (the bacteria makes half of home country apples to rot) while everything else stays the same. Compute the following quantities and answer the question in bold. Remember to show your work. Opportunity cost of apple for the home country Opportunity cost of orange for the home country What will be the new patterns of international trade
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