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Please Help me with the question!! Thank you so much!!!! 3. Southern Ireland uses animal livestock, cows c and sheep s, in addition to labor
Please Help me with the question!! Thank you so much!!!!
3. Southern Ireland uses animal livestock, cows c and sheep s, in addition to labor l, to produce butter b and wool w. Because they are constrained by grazing land, the production functions for butter b and wool w are: b = (c*16) 1/2 W = (s* lu)1/2 Assume there are 4 million cows and 6 million sheep so that c - 4 and s = 6. Ireland has 2 million agricultural laborers / = 2 = 16 + lw a. Draw the production possibility frontier for butter and sweaters by varying labor allocated to each industry. Be sure to label the axes and where the PPF intersects each axis. b. What is the rate of product transformation? c. If Ireland does not export any product, and Irish consumers enjoy utility from butter and wool sweaters according to U(b, s) = b + 2w how should they allocate labor between the two sectorsStep by Step Solution
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