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In the context of Specific Factors Model with two goods (cloth and food), assume the production functions for cloth and food at home are given

In the context of Specific Factors Model with two goods (cloth and food), assume the production functions for cloth and food at home are given below respectively:

c= Lac

f= af

Assume yourself the numerical values for K=50, T=25, L=100, pc =25, pf=10 and a=1/2. Clearly indicate the values you choose.

a)Under autarky, find the equilibrium allocation of labor across sectors and wage rate at home.

b)Under autarky, find the equilibrium total real income of capitalists and the total real income of workers in the cloth sector at home. (No graph)

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