Business, 31.05.2021 15:50 23rwilliamson
Assume that labor moves into the food (Qf) sector and away from clothing (Qc) sector. This will cause the marginal product of land (MPTF) to increase and the marginal product of capital (MPKc) to decrease.
a. Does this contradict the assumption we usually make about diminishing marginal product? Explain
b. Briefly explain the real-life intuition as to why this occurs
Answers: 2
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Assume that labor moves into the food (Qf) sector and away from clothing (Qc) sector. This will caus...
Geography, 18.11.2019 22:31