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Country A has 15000 units of labor and can produce 2 goods, manufactures and food. A's producers take 3 units of labor to produce one unit of...
Country A has 15000 units of labor and can produce 2 goods, manufactures and food. A’s producers take 3 units of labor to produce one unit of manufactures and 6 units to produce one unit of food. Country B has 30000 units of labor and takes 5 units of labor to produce one unit of manufactures and 3 units to produce one unit of food. What is the price of manufactures in terms of food at which A and B would respectively supply manufactures? What would A export in Adam Smith’s world? What is the amount it could supply?