Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150.If w=2w* , what goods should Home produce? What should Foreign produce? 1. Home has 12,000 units of labor available. It can produce two goods, apples andbananas. The unit labor requirement in apple production is 100, while in bananaproduction is 75. There is now also another country, Foreign, with a labor force of18,000. Foreign's unit labor requirement in apple production is 120, while in bananaproduction is 150.d. If w = 2w*, what goods should Home produce? What should Foreign produce?Explain.

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Answered: Home has 12,000 units of labor…

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 1CQQ

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Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150.

If w=2w* , what goods should Home produce? What should Foreign produce?

1. Home has 12,000 units of labor available. It can produce two goods, apples and
bananas. The unit labor requirement in apple production is 100, while in banana
production is 75. There is now also another country, Foreign, with a labor force of
18,000. Foreign's unit labor requirement in apple production is 120, while in banana
production is 150.
d. If w = 2w*, what goods should Home produce? What should Foreign produce?
Explain.

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