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In the two-sector specific-factors model, as more labor is added to a sector, we will see: the total product of labor decrease. the marginal
In the two-sector specific-factors model, as more labor is added to a sector, we will see: the total product of labor decrease. the marginal product of labor increase. the average product of labor remains constant. the marginal product of labor decrease. QUESTION 6 Consider the following table of unit labor requicements (MPL) for production of cloth and bread: In the Ricardian model framework what trade pattern will emerge? Cloth Bread Home 10 20 Forelgn 60 30 O There will be no international trade as it is not beneficial Home will produce only cloth and export cloth, while importing bread Both countries wil produce some of each good but only export good in which each country has comparative advantage in OHome will produce only bread and export bread, while Importing cloth
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