One million hours of labor are available for making cars in the North, and another
1 million hours of labor are available for
world, let's assume that two-thirds of the auto
industry labor in each region is used to make
making cars in the South. In a no-trade
high-quality cars and one-third is used to make
low-quality cars. Solve for how many
kind of car will be produced in the North and
South, and add up to determine the total global
output of each type of car. (Why will both
kinds of cars be made? Because the low-quality
cars will be less expensive.)
of each