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Zinnia Marigold Q W VTP Q W VTP 1 $20 $20 1 $16 $16 2 18 38 2 14 30 3 16 54 3 12

Zinnia Marigold
Q W VTP Q W VTP
1 $20 $20 1 $16 $16
2 18 38 2 14 30
3 16 54 3 12 42
4 14 68 4 10 52

Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the cumulative total product (output) of the particular number of workers. Assumptions: (1) The current wage in Zinnia is $18, and the current wage in Marigold is $10; (2) full employment exists in both countries. If migration is costless and unimpeded, the combined value of total product in the two countries will

Multiple Choice

  • increase from $90 to $98.
  • decline from $120 to $98.
  • decline from $84 to $80.
  • increase from $80 to $84.

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