Question
Country A has 27,000 units of labor and can produce 2 goods, manufactures, and food. A's producers take 3 units of labor to produce one
Country A has 27,000 units of labor and can produce 2 goods, manufactures, and food. A's producers take 3 units of labor to produce one unit of manufactures and 9 units to produce one unit of food. Country B has 75000 units of labor and takes 6 units of labor to produce one unit of manufactures and 3 units to produce one unit of food. What is the price of manufacturers in terms of food at which A and B would respectively supply manufacturers? What would B export in Adam Smith's world? What is the amount it could supply?
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
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