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Consider our class example. Foreign faces a lower relative price Qc because they will import Qc. Assuming Qc is K-intensive and Qf is L-intensive, what
Consider our class example. Foreign faces a lower relative price Qc because they will import Qc. Assuming Qc is K-intensive and Qf is L-intensive, what should happen to the wage to capital rent ratio (w/R) as firms transition to producing more Qf? Group of answer choices (w/R) should increase because K is now a relatively more valuable input (w/R) should decrease because K is now a relatively more valuable input (w/R) should increase because L is now a relatively more valuable input (w/R) should decrease because L is now a relatively more valuable input
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