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Firm A and B produce both Good X and Good Y. Each firm owns 100 units of labor. Firm A needs 2 units of labor
Firm A and B produce both Good X and Good Y. Each firm owns 100 units of labor. Firm A needs 2 units of labor to produce Good X and 1 unit of labor to produce Good Y while Firm B needs 4 units of labor and 5 units of labor. Given labor endowments, Firm A produces 10 units of Good X and 80 units of Good Y; Firm B produces 10 units of Good X and 12 units of Good Y. If both firms trade each other based on the comparative advantage,what is the total market production of Good Y?
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