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Refer to the gure regarding counties A and B. H each country allocated half of its labor force to the production of each good before
Refer to the gure regarding counties A and B. H" each country allocated half of its labor force to the production of each good before trade and then each specialize in their comparative advantage and allocate '15 percent of its labor force to the production of that good, world production of good X would change by and production of good Y by _ Good? 100 . m . Comm-B 4D 100 Good! hint: to solve this question follow these steps: (a) calculate the world production of each good when each country allocate half of its labor force to production of each good. (h) nd comparative advantage of each country. (c) calculate the world production of each good when each country allocate T5 percent of its labor to produce the good it comparative advantage in
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