Question 1: Suppose there are just two goods produced in the Canadian economy: dairy products (D) and manufacturing goods (M). Each requires a specic factor, so the dairy industry needs land (AD) and manufacturing needs machines (KM). However, labor can move freely between the two sectors, so that the wage paid to labor in both sectors is the same. Suppose the marginal product of labor in the dairy industry is given by 120-L D, where L\" is the number of workers in the dairy sector, and the marginal product of labor in manufacturing is given by 120 - L\