If 1 Unit of Land and Labor Are Used to Make

Multiple Choice

If 1 unit of land and labor are used to make bread (costing a total of $10) , while 1 unit of land and 2 units of labor are used to make wine (costing a total of $12) , then:

A) the price of labor is $2 and the price of land is $8.
B) the price of land is $2 and the price of labor is $8.
C) the price of each final good is $11.
D) labor will continue to move into wine production until the price of wine declines to $10.
E) no correct numerical answer is stated above.