The Big Push model illustrates alternative cases where theeconomy can reach equilibrium with a higher level of total outputwith coordinated efforts by modern firms and cases where such anoutcome is impossible despite such efforts. Explain with a graphonly the case where there exists a possibility of a coordinationfailure.
Suppose that a developing country devotes extensive resourcestowards improving the education and skill level of the labor force.How might this help the economy avoid a coordination failure? Isthis strategy likely to be successful? Why or why not?
