In a competitive industry,it takes a fixed ratio of one skilled worker and two unskilled workers to produce a unit of output.If the immigration of unskilled workers lowers the wage of unskilled workers,it will likely

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Quizplus · Accepted Answer

The scale effect suggests that lower wages for unskilled workers reduce production costs, potentially increasing output and thus increasing the demand for skilled workers to maintain the fixed ratio of labor inputs.

In a Competitive Industry,it Takes a Fixed Ratio of One