Home and Foreign can produce laptops using labour and capital and walnuts using labour and land. The production possibility frontier (PPF) in Home has the following properties. First, the maximum quantity of laptops that can be produced is Q_L=50 (when all labour is employed in the production of laptops) and the maximum quantity of walnuts that can be produced is Q_W=50 (when all labour is employed producing walnuts). Second, the production outcomes Q_L=30, Q_W=40 and Q_L=40, Q_W=30 are on the PPF. Third, the opportunity cost of producing one additional unit of laptop is Q_L/Q_W when the quantities currently produced are Q_L and Q_W.

Suppose after opening up to trade the price of laptops relative to that of walnuts is 4/3 both in Home and Foreign. Determine the output of laptops.