In the Specific-Factor Model with Land being used in Agriculture, Capital in Manufacturing, and Labor being mobile across the two industries.
In the Specific-Factor Model with Land being used in Agriculture,
Capital in Manufacturing, and Labor being mobile across the two industries. Suppose that the price of agricultural goods decreases by 5%, the price of manufacturing goods increases by 5% and the marginal product of capital increases by 2%. Which outcome is possible?
The relative income of capital owners vs. land owners, RK/ RT, increases by…?
1.2%
2.5%
3.10%
4.15%
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post In the Specific-Factor Model with Land being used in Agriculture, Capital in Manufacturing, and Labor being mobile across the two industries. appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.