5. In Home and Foreign, there are two factors each of production, land, and labor used to produce only one good. The land supply in each country and the technol- ogy of production are exactly the same. The marginal product of labor in each country depends on employment as follows: Number of Workers Employed 1 2 3 4 5 6 7 8 9 10 11 Marginal Product of Last Worker 30 29 28 27 26 25 24 23 22 21 20 Initially there are 11 workers employed in Home, but only 5 workers in Foreign. Find the effects of free movement of labor from Home to Foreign in employment, production, real wages, and the income of landowners in each country.

5. In Home and Foreign, there are two factors each of production, land, and labor used to produce only one good. The land supply in each country and the technol- ogy of production are exactly the same. The marginal product of labor in each country depends on employment as follows: Number of Workers Employed 1 2 3 4 5 6 7 8 9 10 11 Marginal Product of Last Worker 30 29 28 27 26 25 24 23 22 21 20 Initially there are 11 workers employed in Home, but only 5 workers in Foreign. Find the effects of free movement of labor from Home to Foreign in employment, production, real wages, and the income of landowners in each country.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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