Multiple Choice
In the accompanying graphs, the pre-migration labor force in country A is 0d and in country B it is 0u. If business income is total output minus total labor cost, then business income in country B after emigration occurs
A) increases by area vqsw.
B) increases by area qsr.
C) decreases by area qsr.
D) decreases by area vqsw.
Correct Answer:
Verified
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