In the specific factor model: a) Explain the shape of the Production Possibility Frontier. b) What...

In the specific factor model: a) Explain the shape of the Production Possibility Frontier. b) What is the equilibrium condition for labour allocation between sectors? c) Explain at what point on the PPF the county will produce? d) Assume the price of one good is increasing. Explain what happens with labour and wage rate in each sector.

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Rahul Sunny answered 1 year ago

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