1)Assumptions: (1) The demand for labor in Alphania and Betania are as shown by DA and DB, respectively; (2) Alphania’s native labor force is F and that of Betania is g; (3) wage L in Alphania is equal to wage m in Betania; and (4) full employment exists in both countries. Refer to the given diagram and assumptions. After migration has ceased:world output will have increased by mljh – MLJH.Betania’s output will have increased and Alphania’s output will have decreased, but world output will not have changed.world output will have increased by gjhf – GJHF.d) world output will have decreased by gjhf – GJHF.
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