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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

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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

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