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Information P Flag question Consider a simple exchange economy where there are two producers, one producing Good X and the ot
Question 4 Not yet answered Marked out of 2.00 It can be verified that allocating 10 units of K pnd 60 units of L to firm Y i
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Answer #1

Total capital K =100 uniks Total Labour L 800 units we know that this kx + = 100 8 Lxt Ly 800 L are currently Y production 60х 100 - 10 = 90 Kx= 100 - Ky Lx = 800 - Ly 800- 60 740 Given X (KxLx) 4 Kx + 2x 4(90) + 740 1100 le 1100 units of x 0.4 Y ( k

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