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In a two-sector (manufacturing and agriculture) specific-factors model, where production is subject to the law of diminishing marginal returns to all factors, suppose labour and
In a two-sector (manufacturing and agriculture) specific-factors model, where production is subject to the "law of diminishing marginal returns" to all factors, suppose labour and capital are the two factors used for the production of manufacturing goods, as more labor is employed: Question 1Answer a. the marginal product of labour rises while the marginal product of capital falls. b. the marginal product of labour falls while the marginal product of capital falls. c. the marginal product of labour rises while the marginal product of capital rises. d. the marginal product of labour falls while the marginal product of capital rises
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