Go back to the numerical example with no factor su...

Go back to the numerical example with no factor substitution that leads to the production possibility frontier in the following Figure.a. What is the range for the relative price of cloth such that the economy produces both cloth and food？ Which good is produced if the relative price is outside of this range？ b. Write down the unit cost of producing one yard of cloth and one calorie of food as a function of the price of one machine-hour, r, and one work-hour, w. In a competitive market, those costs will be equal to the prices of cloth and food. Solve for the factor prices r and w. c. What happens to those factor prices when the price of cloth rises？ Why？