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This exercise applies the basic Ricardian model of one factor ( labor ) and two goods to the national economy of Home. Assume the following:

This exercise applies the basic Ricardian model of one factor(labor) and two goods to the national economy of Home. Assume the following:
=
number of labor hours needed to produce a unit of in Home;
=
number of labor hours needed to produce a unit of in Home;
=
the price per ton of ;
=
the price per bolt of .
Part 2
Which of the following conditions signifies that workers in Home will all want to work in the sector?
Part 3

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