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Suppose France produces Machinery (M) and cucumbers (C). Machinery is produced using capital and labour. Cucumbers are produced using land and labour. Labour is mobile

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Suppose France produces Machinery (M) and cucumbers (C). Machinery is produced using capital and labour. Cucumbers are produced using land and labour. Labour is mobile between sectors within a country. Assume that the initial equilibrium is A, with an allocation of labour in France equal to L and a wage was represented in the bucket diagram below. France engages in free trade at xed world prices. France Total Labor Supply

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