Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 2. Read your class notes (this topic is NOT covered in the text and was only covered in class.) In the spaces below write
Problem 2. Read your class notes (this topic is NOT covered in the text and was only covered in class.) In the spaces below write the last 6 digits of your student ID number below and cross out any zeros. Put the first four non zero numbers in the spaces below (A) (B) (C) (D) (Example: If your student number is 0678031 this line should be Q (A) Z(B) _8(C) (D) Using the set of number generated from your student ID number above create the following parameters to use in solving a Specic Factor Model. An economy has two sectors, a food (denoted by F) sector and a manufacturing sector (denoted by M). The food sector uses a specic factor, land (denoted by a T), and a mobile factor, labour (denoted by LP), to produce food. The manufacturing sector uses a specific factor, capital (denoted by a K), and a mobile factor, labour (denoted by LM), to produce manufactured goods. The marginal products of labour in producing food and manufactured goods are mg\" :IOAiLF m\" :20CLM Where A and C in the equations are the digits from your student ID number. Let the price of a unit of food be given by B and the price of a unit of manufactures by D. The labour force, L = LF + LM, is given by 10X(A+C) where A and C are again digits from your ID number. (Example: using the sample values Q (A) Z(B) _8(C) (D) we have Mg\" 2607141,, Mpg\" 21607134,]: = 140,317: 7, andPM= 3, And labour demands (value of marginal product) are 321499: : 4207 712,, ,RMMQM : 480 * 3LM
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started