The nation of Sunland produces only two commodities, silk and petroleum, using labor and capital. The...

The nation of Sunland produces only two commodities, silk and petroleum, using labor and capital. The labor constraint with full employment for this country is given by the equation 4S + 5P = 10, while the capital constraint with full employment is given by 5S + 8P = 12.

a) What would be the slope of the labor constraint and the capital constraint?

b) Which of the commodities is relatively capital intensive? And why

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Expert Solution

Rahul Sunny answered 2 years ago

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