Thanks to proximity and industrial cooperation, France and Germany share the same technology for the production of mobile phones and champagne. These two european countries only differ in their respective factor endowments, where KF = 70 and L F = 110 while KG = 110 and L G = 70. Both countries have the same utility function, which is represented by U(Cm, Cc) = C 1/2 m C 1/2 c where Cm represents the consumption of mobile phones and Cc represents the consumption of champagne. The production functions are: Qm = min{2Lm, Km} and Qc = min{Lc, 2Kc} where m represents the production of mobile phones. (a) i) Which industry is labor intensive and which is capital intensive? (HINT: As we mentioned in the Magistral session, when the production technology is of type Leontief, if a firm that does not wants to waste any resources (i.e. labor and capital) then it must be the case that 2Lm = Km in the mobile phone industry and that Lc = 2Kc in the champagne industry, from where you can deduct the number of machines per worker needed in each industry, therefore from this information you can deduct which industry is kapital