Question in photo.

1. The Home country has 100,000 workers who each work 8 hours a day. The economy produces two goods, mango and beef. With one hour of labour a Home country worker can produce 25 kg of mango or 10 kg of beef (these are the initial productivity levels to be considered in the questions below). In each part of the problem, give specific numerical answers, and indicate the numerical values of slopes and intercepts, whenever possible. (a) Graph the production functions for mango and beef in the Home country. How would the slope and position of the production functions change if the output an hour of labour could produce rose to 27 kg of mango and 12 pounds of beef? (b) Under autarky, what would be the relative price of beef in terms of mango in Home (under initial productivity levels)? How would the relative price change if the output an hour of labour could produce rose to 27 kg of mango and 12 kg of beef? (c) Suppose Home opens its economy to trade and that on the world market beef sells for $2 a kg and mango sells for $1 a kg. In which good does Home have a comparative advantage (for initial productivity levels)? How does your answer change if an hour of labour in Home could produce 27 kg of mango or 12 kg of beef? (d) Suppose that under autarky, Home's production of mango was 10,000,000 kg and production of beef was 4,000,000 kg (for initial productivity levels). What was the country's consumption of these goods? Under free trade would Home be able to afford the goods it consumed under autarky? (e) Would Home benefit from having free trade