How does trade affect the returns to land labor and capital


Problem

Suppose there are three factors: capital, labor and land. Wheat requires inputs of land and labor, and car requires capital and labor. Suppose Canada's endowments are 10 capitals and 100 land and the United States' are 50 capital and 100 land. Which good does each country export? How does trade affect the returns to land, labor and capital in Canada and the United States? Explain your answer to each question.

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Microeconomics: How does trade affect the returns to land labor and capital
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