Because the capitallabor ratio will be unchanged in the
Long run, how will immigration affect the MPs and
Returns to factors of production?
A)They will not change.
B)They will fall.
C)They will rise.
D)They will rise in the short run, but fall in the long run.

Question

Because the capital­labor ratio will be unchanged in the
Long run, how will immigration affect the MPs and
Returns to factors of production?
A)They will not change.
B)They will fall.
C)They will rise.
D)They will rise in the short run, but fall in the long run.

Quizplus · Accepted Answer

Since the capital-labor ratio is unchanged in the long run, there will be no significant impact on the marginal products (MPs) or returns to factors of production. They will remain the same.

Because the Capital­labor Ratio Will Be Unchanged in the

Because the Capitallabor Ratio Will Be Unchanged in the