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II) Solve the problem on H-O framework and prove the sector specific model Suppose that in South Africa, it generally requires 3 workers and 3
II) Solve the problem on H-O framework and prove the sector specific model Suppose that in South Africa, it generally requires 3 workers and 3 machines to produce a shirt, meanwhile, 2 workers and 4 units of capital are needed to produce 1 kilo of biscuits. As well South Africa has in total 200 workers labor and 300 machines for the production of both commodities shirts and biscuits. A) Identify and write the capital and labor constraint equations that South Africa would use to reach its optimal production bundle of shirts and biscuits by using all its total capacity of workers and machines B) Based on your previous answer: what will the optimal quantities produced of shirts and biscuits be; given the labor and capital constraints used in their production
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