Business, 14.03.2020 01:27 bihanna1234

Assume a country produces only wine and cups. Both wine and cup production use land and labor as their only inputs. Wine production is relatively land-intensive while cup production is relatively labor-intensive. According to the Rybczynski theorem, a significant rise in immigration is most likely to lead to
a. an increase in wine production by a greater proportion than the increase in the production of cups
b. an increase in the production of both wine and cups
c. an increase in the production of cups by a greater proportion than the increase in the size of the labor force due to immigration.
d. an increase in wine production by a greater proportion than the increase in the size of the labor force due to immigration.

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Assume a country produces only wine and cups. Both wine and cup production use land and labor as the...