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With a specific factor model with two countries, H and F, the two countries show identical total products as below:
Number of Labor employed 0 1 2 3 4 5 6 7 8 9 10 11Total Product 0 20 39 57 74 90 105 119 132 144 155 165
Assuming no unemployment, answer the followings:
a. Draw the real labor demand curve for each country.b. Suppose that there are 11 workers employed in H, but only 5 workers employed in F. What are the level of employment and real wage rate for each country with the free labor movement? c. Find the possible labor migration between the two countries.
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