What is the price of manufactures in terms of food

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Country A has 30,000 units of labor and can produce 2 goods, manufactures and food. A’s producers take 3 units of labor to produce one unit of manufactures and 12 units to produce one unit of food. Country B has 50000 units of labor and takes 5 units to produce one unit of manufactures and 10 units to produce one unit of food. What is the price of manufactures in terms of food at which A and B would respectively supply manufactures? What would B export in Adam Smith’s world? What is the amount it could supply?

Reference no: EM131112777

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