Country A has 55,000 units of labor and can produce 2 goods, manufactures and food. A's producers
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Question:
Country A has 55,000 units of labor and can produce 2 goods, manufactures and food. A's producers take 5 units of labor to produce one unit of manufactures and 2 units of labor to produce one unit of food. Country B has 33000 units of labor and takes 3 units to produce one unit of manufactures and 5 units to produce one unit of food. What is price of manufactures in terms of food at which A and B would respectively supply manufactures? What would B export in Adam Smith's world? What is the amount it could supply?
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