(a) K for Australia, Ka = 45000 m and Lf= 22 m. This gives K/L ratio = 2045.45
For Malaysia, K/L = 37000 m/ 15 m = 2466.67
This means Malaysia has more capital per worker than Australia,
hence Malaysia is K- abudant and Australia is L- abundant.
(b) Hence, Australia would produce Cloth as it is Labor Abundant.
1. Suppose that in 2016, Australia had a working-age population of 22 million and its capital...
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