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. Suppose that there are two goods: and y, and two factors7 labor (L) and capital (K). Employment of labor and capital in industry i

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. Suppose that there are two goods: and y, and two factors7 labor (L) and capital (K). Employment of labor and capital in industry i will be denoted LI. and Ki respectively forz' : 3:, y. Goods I and y are produced using the following production technologies m g KQLPH yg KLli (1) 1' 1' 9' y where a:

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