Show graphically what happens to the output mix in israel

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Question: There is an increase in the labor endowment of a country due to migration. Think about the huge influx from Russian Jews into Israel after the end of the Cold War. Show graphically what happens to the output mix in Israel -- you may assume that nothing changes to technology and that the international Prices stay the same. Use the Lerner Pearce diagram (the graph with the unit value isoquants and unitcost lines). Put capital on the Y and labor on the X axis. Assume two goods: good 1 is labor intensive, good 2 is capital intensive).

Reference no: EM132200963

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