Determine the current output of T-shirts? Explain. (4 marks)

Calculate the slope of the production possibility function (with T-shirts on the y-axis and rice on the x-axis) at the current output levels of T-shirts and rice. Take 2 decimal places. (4 marks)

Calculate the unit price of T-shirts. (6 marks)

Calculate the nominal wage per worker in the rice sector. (6 marks)

Calculate the profit of the employers of the rice sector. (7 marks)

Question 2 (27 marks) H Country produces T-shirts and Rice only. There is a total of 10 workers in H Country. The labour input, output levels of T-shirts and rice, marginal product of labour of T-shirts (MPLT-shirts) and marginal product of labour of rice (MPLRice) are shown in the table below. Labour is the mobile factor; capital and land are the specific factors of T-shirts and rice respectively. Wage is the only cost in both sectors. The employers in both sectors will produce at the output levels that will maximize their profits. H Country is currently not trading with any other countries. Labour Input Output of MPLT-shirts Output of Rice (in kg) 0 T-shirts MPLRice 0 0 1 56 56 70 70 2 86 30 112 42 3 114 28 150 38 4 140 26 184 34 5 158 18 212 28 6 174 16 238 26 7 188 14 254 16 8 198 10 268 14 9 206 8 280 12 10 210 4 286 6 Suppose the current output of rice is 268 kg and the price of rice is $56 per kg