Suppose that the wage is $20 per hour in a twosector
(manufacturing and agriculture) specificfactors model.
Currently, the prices of manufactured and agricultural
outputs are $5 and $1, respectively; the marginal
product of labor in the manufactured sector is 6 units
per hour; and the marginal product of labor in the
agricultural sector is 10 units per hour.What will
happen to the distribution of labor between the two
sectors?

Question

Suppose that the wage is $20 per hour in a two­sector
(manufacturing and agriculture) specific­factors model.
Currently, the prices of manufactured and agricultural
outputs are $5 and $1, respectively; the marginal
product of labor in the manufactured sector is 6 units
per hour; and the marginal product of labor in the
agricultural sector is 10 units per hour.What will
happen to the distribution of labor between the two
sectors?

Quizplus · Accepted Answer

The Answer of Suppose that the wage is $20 per hour in a two­sector
(manufacturing and agriculture) specific­factors model.
Currently, the prices of manufactured and agricultural
outputs are $5 and $1, respectively; the marginal
product of labor in the manufactured sector is 6 units
per hour; and the marginal product of labor in the
agricultural sector is 10 units per hour.What will
happen to the distribution of labor between the two
sectors?

Suppose That the Wage Is $20 Per Hour in a Two­sector

Suppose That the Wage Is $20 Per Hour in a Twosector