.Findthe effect of free movement of labour from the low wage to the high wage country. When such economic migration ceases, in each country what will be the -

i) levels of production,

ii) real wages

iii)the income of landowners

Question 1 (20 points) In Home and Foreign there are two factors of production, land and labour, used to produce only one good. The land supply in each country and the technology of production are exactly the same. The marginal product of labour in each country depends on employment as follows: Initially there are 12 workers employed in Home but only 6 workers in Foreign. a) Find the effect of free movement of labour from the low wage to the high wage country. When such economic migration ceases, in each country what will be the - i) levels of production, ii) real wages iii) the income of landowners