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Countries FI and NO produce timber and fish only labor. In country FI, 500 000 units of labor are available; 100 units of labor are

  1. Countries FI and NO produce timber and fish only labor. In country FI, 500 000 units of labor are available; 100 units of labor are necessary for producing one ton timber and 50 units of labor are necessary for producing one ton of fish. In country DE, also 500 000 units of labor are available, but 80 units of labor are necessary for producing ton of timber and 20 units of labor are necessary for producing ton of fish. Consumers in both countries want to enjoy both timber-made products and fish.

Complete the Table below for country FI. If there is insufficient information to give a precise number, fill in an interval (1.5 points).

Please may you help me understand how we got the responses for free trade?

Autarky Free trade
Relative price of timber, Pt/Pf 2 4
Quantity of timber consumed domestically (0; 5000) (0;5000)
Quantity of fish consumed domestically (0; 10 000) (0;20000)
Units of labor required for obtaining one ton of timber 100 100
Units of labor required for obtaining one ton of fish 50 25

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