Business, 07.07.2021 16:40, mandilynn22
1) Imagine that two countries, Richland and Poorland, can produce just two goods, computers and coal. Assume that for a given amount of land and capital, the output of these two products requires the following constant amounts of labour:
1 computer, Richland 2 and poorland 4
100tonnes of coal, Richland 4 and poorland 5
Assume that each country has 20 million workers.
i. If there is no trade, and in each country 12 million workers produce computers and 8 million workers produce coal,
a. how many computers and tonnes of coal will each country produce?
b. What will be the total production of each product?
Answers: 3
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