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Q: International trade theory ( No Answer,   0 Comments )
Question  
Subject: International trade theory
Category: Business and Money > Economics
Asked by: queeny-ga
List Price: $10.00
Posted: 06 Oct 2002 20:45 PDT
Expires: 09 Oct 2002 17:04 PDT
Question ID: 73431
1. The output of two commodities X and Y are given by the
technologies:
X=min [Kx, 3Lx]
Y=min [3Ky,Ly]
Factor endowments are 10 units of capital and labor. The relative
price of X is P(=Px/Py)
a.	What are outputs and factor rewards as functions of P?
b.	How do outputs and factor rewards change if the supply of capital
rises to 20 and then to 40, given P?
c.	What happens to outputs and factor rewards if the technology for
producing Y changes to Y=min(1.5Ky,0.5Ly)
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