Business, 01.08.2020 22:01 Graciouzgigi1394

Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors 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?

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Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-facto...