Social Studies, 09.10.2019 23:10 michelemosbahiow6yya
Assume labor and capital are the only two inputs. digitopolis is a capital-abundant country that produces personal computers and fax machines. computer production is capital intensive, and fax production is labor intensive. capital can be employed in either the computer or the fax industry and can move easily back and forth between the two. labor is specialized; some labor is suited to produce personal computers and other labor to produce fax machines. "computer labor" is useless in producing fax machines, and "fax labor" is useless in producing computers. if digitopolis opens trade with a labor-abundant country with identical tastes, what will happen in the short run to:
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