Assume a specific factors economy produces two goods, cloth and food, and that wher food is on the y-axis. When the price of cloth increases by 6% and the price of food does not change, A. labor shifts from the cloth sector to the food sector. B. the real wage rates are unaffected. C. the marginal product of labor in the cloth sector falls. D. the marginal product of labor in the cloth sector rises.

Assume a specific factors economy produces two goods, cloth and food, and that wher food is on the y-axis. When the price of cloth increases by 6% and the price of food does not change, A. labor shifts from the cloth sector to the food sector. B. the real wage rates are unaffected. C. the marginal product of labor in the cloth sector falls. D. the marginal product of labor in the cloth sector rises.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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