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Home (Foreign) uses its own labour L (L*) to produce goods X (X*) and Y (Y*). The labor requirements to produce one unit of X
Home (Foreign) uses its own labour L (L*) to produce goods X (X*) and Y (Y*). The labor requirements to produce one unit of X and one unit of Y are , for Home (for Foreign, , ). a have the following production technologies and resources. Home = 5 = 10 = 100 Foreign = 4 = 4 = 100 a) List all absolute advantages and comparative advantages if there is any for Home and Foreign b) Draw PPF and CPF for both Home and Foreign without any trade. Make sure to label and identify all intercepts clearly. c) What are the equations for PPF in Home? In Foreign
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