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Country A and Country B produce fruit and timber. Each country has a labor force of 1,200. Country A can produce 10 baskets of fruit per month for each worker, and 5 board feet of timber per month for each worker. Country B can produce 30 baskets of fruit per month per worker and 10 board feet of timber per month per worker. Suppose the two countries are not trading and that both desire to have equal numbers of feet of timber and baskets of fruit. How would they allocate workers to the two sectors?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9745639

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