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Let f(L_A) = C(L_A)^1/3. Let total available labor be 1000, 20% of which is employed in industry. Suppose the price of the agricultural good is
Let f(L_A) = C(L_A)^1/3. Let total available labor be 1000, 20% of which is employed in industry. Suppose the price of the agricultural good is $1. The wage in the rural sector is $2. FInd the value of C such that the agricultural surplus is twice as large as the average agricultural surplus.
a. 400
b. 0
c. 16
d. 160
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