Suppose that computers use 2 units of capital for each worker, so that KC = 2 LC, whereas shoes use 0.5 units of capital for each worker, so that KS = 0.5 LS. There are 300 workers and 300 units of capital in the economy.

a.Solve for the amount of labour and capital used in each industry.

b.Suppose that the number of workers increases to 350 because of immigration, keeping total capital fixed at 300. Solve for the amount of labour and capital used in each industry.

c.Suppose instead that the amount of capital increases to 350 due to FDI, keeping the total number of workers fixed at 300. Solve for the amount of labour and capital used in each industry.

d.Explain how your results in parts (b) and (c) are related to the Rybczynski theorem.