In destination countries, as immigration occurs and
More labor is employed, in the short run, wages fall
And the marginal products of land and capital (fixed
Resources):
A)are unaffected.
B)both rise.
C)both fall.
D)rise for one and fall for the other.

Question

Quizplus · Accepted Answer

When more labor is employed, the overall production increases which leads to higher demand for land and capital. This in turn leads to an increase in both marginal products of land and capital in the short run. However, in the long run, the increased demand may lead to an increase in the prices of land and capital, which would ultimately lead to a decrease in their marginal products.

In Destination Countries, as Immigration Occurs and