[Specific factor model] Assume that there are two goods: cloth
(C) and food (F). There are 3 factors: labor (L), capital (K), and
land (T).
1) What is the slope of the production possibility frontier?
2) Graph the wage rate and the allocation of labor between the
two sectors.
3) Determine the output of each sector using PPF.
4) Graphically show that the change in relative prices leads to
the change in allocation of labor and output combination. And
determine...