In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then Both owners of K and owners of A will benefit. Owners of A will benefit. Owners of K will benefit. Neither owners of K nor owners of A will benefit.
In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then Both owners of K and owners of A will benefit. Owners of A will benefit. Owners of K will benefit. Neither owners of K nor owners of A will benefit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then
- Both owners of K and owners of A will benefit.
- Owners of A will benefit.
- Owners of K will benefit.
- Neither owners of K nor owners of A will benefit.
Include diagram*** and explanation
attached is graph for reference
![W
Ls
LD](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a59ca7e-5f0e-4cbc-ba7e-1f582a734068%2F9b3e7780-41a6-4828-a358-0705ac7e08be%2Fb8pibhc_processed.png&w=3840&q=75)
Transcribed Image Text:W
Ls
LD
![W
Mfg
Ag.
Profit
Profit
Wages
Wages
L](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a59ca7e-5f0e-4cbc-ba7e-1f582a734068%2F9b3e7780-41a6-4828-a358-0705ac7e08be%2Fhmhzkve_processed.png&w=3840&q=75)
Transcribed Image Text:W
Mfg
Ag.
Profit
Profit
Wages
Wages
L
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