Business
Business, 02.06.2021 19:40, labrandonanderson00

Imagine an economy makes only clothes (QC) and food (QF) and has two inputs of production: Labor (L) and Capital (K). It takes 4 units of capital and 1 unit of labor to make one unit of clothing. It takes 1 unit of capital and 1 unit of labor to make one unit of food. There is no substitutability between the two inputs. Which industry is labor intensive and which is capital intensive?

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Imagine an economy makes only clothes (QC) and food (QF) and has two inputs of production: Labor (L)...

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