A competitive market for commodity x is supplied by companies working in two different regions (A and B). The market itself is equidistance from both regions butregion A borders another country where political upheavals have left a large numberof skilled workers unemployed. An immigration agreement was reached according towhich, workers from the other country can work in this country but not live in it.Hence, there was an influx of workers into region A alone.
(a) Describe the initial set-up of the industry making a clear distinction between theregions. Will the initial technology employed by all firms be the same?