Question
Question #2. Assume that there are two economies (Washington and California), two goods (apples and iPods), and two factors (land and labor). The return to
Question #2.
Assume that there are two economies (Washington and California), two goods (apples and iPods), and two factors (land and labor). The return to land T is the rental rate r and the return to labor L is the wage rate w. Washington is land-abundant, while California is labor-abundant. Apple production is land-intensive, while iPod production is labor-intensive. Let the relative price of apples be p = Papple / Pipod.
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An Introduction to Management Science Quantitative Approach to Decision Making
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
15th edition
978-1337406529
