Country X produces two goods, guns and roses, using labor and land. Assume that production of guns is relatively labor-intensive and production of roses is relatively land-intensive. Suppose a large number of workers from a neighboring country migrate to country X. Carefully explain all the predictions of the Rybczynski theorem' about the changes in output of both guns and roses in country X. Be certain to explain any shifts in resources from one industry to the other.

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The Answer of Country X produces two goods, guns and roses, using labor and land. Assume that production of guns is relatively labor-intensive and production of roses is relatively land-intensive. Suppose a large number of workers from a neighboring country migrate to country X. Carefully explain all the predictions of the Rybczynski theorem' about the changes in output of both guns and roses in country X. Be certain to explain any shifts in resources from one industry to the other.

Country X Produces Two Goods, Guns and Roses, Using Labor