A corollary to the Rybczynski theorem is that in the
Long run, prices of factors will not be affected.This is
Known as:
A)the Friedman corollary.
B)the MarshallLerner condition.
C)the factor price insensitivity result.
D)the StolperSamuelson prediction.

Question

A corollary to the Rybczynski theorem is that in the
Long run, prices of factors will not be affected.This is
Known as:
A)the Friedman corollary.
B)the Marshall­Lerner condition.
C)the factor price insensitivity result.
D)the Stolper­Samuelson prediction.

Quizplus · Accepted Answer

The corollary that states that in the long run, prices of factors will not be affected is known as the factor price insensitivity result. This is a corollary to the Rybczynski theorem, which explains the impact of changes in a country's endowments on its production of goods. The other options listed are unrelated concepts.

A Corollary to the Rybczynski Theorem Is That in the