Suppose we have two cities: miami and atlanta. individuals expect to live 10 years, face an interest rate of 0% per year. workers in each city have a yearly labour supply given by h(w)-8 (e. g. , workers always work 8 hours a year). firms face competitive input and output markets and the yearly production technology of firms in each city is f(k, l) - 2vl and firms get $10 per unit produced. suppose that both miami and atlanta have 50 workers and 16 firms. suppose that there is an immigration wave (in period 1 raising the labour supply of miami by 50 workers.

(a): after the immigration wave in miami, what will wages in miami and atlanta be if people cannot move?

(b): after the immigration wave in miami, w $1. 75 if people face a moving cost of $3 wages in atlanta be higher or lower than $1. 75 if people face a moving cost of $3?