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Suppose that labor is paid a competitive hourly wage of $20, and suppose also that the competitive price of machines is $2 per machine and for cloth...
Suppose that labor is paid a competitive hourly wage of $20, and suppose also that the competitive price of machines is $2 per machine and for cloth it is $0.25 per yard. What is the real wage associated with cloth production? With machine production? Under autarky what is the marginal product product of labor in machine production in this country. Explain.