Question 1 Assume that an economy produces only good X and good Y. Both X and Y are produced with labor and one other xed input specic to that product (capital for X and land for Y). The total supply of labor is 8 million units. Given the supply of capital and land, the output of the two goods (in millions) depend on labor input as follows: a. Graph the production possibility 'ontier using the fourquadrant diagram. Why is it curved? b. Assume each X sells for $100 and each Y sells for $200. Determine graphically the wage rate and the allocation of labor between the two sectors assuming that the marginal product of labors corresponding to the production functions in the rst table are as follows: e. Determine the level of output for each sector at the equilibrium point (you can use the table from part 'a')