Multiple Choice
Suppose that the Home country in the twosector
(manufacturing and agriculture) specificfactors model
Has a comparative advantage in manufactured output.
What will happen to the marginal product of capital used
In manufacturing production when trade occurs?
A) It will fall.
B) It will rise.
C) It will not change.
D) It will first fall, then rise.
Correct Answer:
Verified
Correct Answer:
Verified
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