Which of the statement is FALSE? A. An increase in the relative price of good X will increase the real price of the factor that is used intensively in the production of good X. B. A decrease in the relative price of good X will decrease the marginal productivity of the factor that is used scarcely in the production of good X. C. A decrease in the relative price of good X will increase the inverse of the relative factor price that is used in the production in good X. D. A decrease in the relative price of good X will increase the marginal productivity of the factor that is used intensively in the production of good X.
Which of the statement is FALSE? A. An increase in the relative price of good X will increase the real price of the factor that is used intensively in the production of good X. B. A decrease in the relative price of good X will decrease the marginal productivity of the factor that is used scarcely in the production of good X. C. A decrease in the relative price of good X will increase the inverse of the relative factor price that is used in the production in good X. D. A decrease in the relative price of good X will increase the marginal productivity of the factor that is used intensively in the production of good X.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the statement is FALSE?
A. An increase in the relative
B. A decrease in the relative price of good X will decrease the marginal productivity of the factor that is used scarcely in the production of good X.
C. A decrease in the relative price of good X will increase the inverse of the relative factor price that is used in the production in good X.
D. A decrease in the relative price of good X will increase the marginal productivity of the factor that is used intensively in the production of good X.
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