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Name: Question 3 There are a total of 700 units of labor in the economy, and workers can either seek employment in one of two

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Name: Question 3 There are a total of 700 units of labor in the economy, and workers can either seek employment in one of two sectors: Sector 1 or Sector 2. The graph below depicts the marginal revenue product curves for both sectors in the economy before the introduction of international trade. 27 $26 $24 $22 $20 $18 MRP. $16 100 200 300 400 500 600 700 Part (iv): Suppose that the country begins to export the product sold by Sector 2, and as a result, 100 workers migrate from Sector 1 to Sector 2. By how much did exporting increase the marginal revenue product of each unit of labor in Sector 2? A. $3 B. $4 C. $5 $6 E. $8 Part (v): Suppose that the country begins to export the product sold by Sector 2, and as a result, 100 workers migrate from Sector 1 to Sector 2. By how much does the equilibrium wage rise in each sector? A. $3 B. $4 C. $5 D. $6 E . Part (vi): Exporting leads the marginal revenue product of labor curve in the agricultural sector to shift upward. What is the source of this upward shift

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