A Model of a Two-Factor Economy Figure 4-4: From Goods Prices to Input Choices Wage-renta ratio, w/r FF w/门2 Relative (PP:)2(Pc/PF) (TC/Lcl'(TC/LC(T/L)(T/LELand price of labor cloth, PCPE Increasing Increasing Rato,T几 Copyright C 2003 Pearson Education, Inc lide 4-10Copyright © 2003 Pearson Education, Inc. Slide 4-10 FF CC SS Land￾labor Ratio, T/L Relative price of cloth, PC/PF Wage-rental ratio, w/r (PC/PF ) 1 (TC/LC) 2 (TC/LC) 1 (TF /LF ) 2 (TF /LF ) 1 (w/r) 2 (w/r) 1 Increasing Increasing A Model of a Two-Factor Economy Figure 4-4: From Goods Prices to Input Choices (PC/PF ) 2