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Labor mobility between countries a and b

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Reference no: EM131348681

This question concerns labor mobility between countries A and B.

a. Say that country A's MPL = -L + 10 and country B's MPL = 2L + 1. What would be the optimal amount of L? Note: country B's MPL is written in terms of the coordinates of country A.

b. If L was originally 4 (in terms of coordinates of country A), how much does welfare improve when labor migration is allowed?

Reference no: EM131348681

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