NEED C-F PLEASE ALL OTHERS ANSWEREDALREADY. FASTER THE RESPONSE MORE LIKELY TO GET THUMBS UP
Consider 2 countries, Holland andSweden (H and S). The marginal productivities of one year oflabor in the industries Machinery (M) and Furniture (F) are givenin the following table:
Marginal Productivity of One Year ofLabor
Machinery (tons)
Furniture (tons)
Holland
3
3
Sweden
2
4
Each country has a population of 10 million people, all of whomprovide one unit of Labor.
, assume that the national utilityfunction is the same in each country and given by aCobb-Douglas formula: U(M,F)=M1/2F1/2. This makes .
MUm =1/2(F1/2/M1/2) andMUF=1/2(M1/2/F1/2)
NEED C-F PLEASE ALL OTHERS ANSWERED ALREADY. FASTER THE RESPONSE MORE LIKELY TO GET THUMBS UP Consider 2 countries, Holl
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