Consider a Heckscher-Ohlin framework where all factors are freely mobile and an autarkic country called the Magnificent Commonwealth Union (or the MCU for short) produces two kinds of movies: Blockbusters (denoted by B) and Fillers (denoted by F). Making a movie requires two inputs, visual artists (denoted by V ) and actors (denoted by A). To produce a Blockbuster the MCU needs to use five visual artists per actor, VB/AB = 5. To produce a Filler the MCU needs to use one visual artist per actor, VF /AF = 1. Suppose there are 2,000 visual artists and 500 actors in MCU. One movie requires fifteen actors and the corresponding number of visual artists depending on whether it is a Blockbuster or a Filler (e.g., one Blockbuster requires 15 actors and 75 visual artists).

For 3.2 - 3.5, suppose that an influx of 120 visual artists join the MC

3.5 What happens to the visual artists' real earnings as a result of country-wide reallocations? A They rise B They fall C The stay the same D Ambiguous