The Specific-Factors Model Concludes That If There Is a Decrease

Multiple Choice

The specific-factors model concludes that if there is a decrease in the relative price in (and a contraction of) one industry, the factor specific to that industry:

A) will experience an increase in its marginal product.
B) will experience a decrease in its marginal product.
C) will be transferred to other industries.
D) will have competition as additional units of that specific factor are hired from other industries.