One difference in the assumptions of the Ricardian versus the specific-factors model is the following: The...

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One difference in the assumptions of the Ricardian versus the specific-factors model is the following: The marginal productivity of labor is constant in the Ricardian model and declining as production increases in the specific-factors model. Describe one implication of these differences to labor and one to capital (or land) owners. One difference in the assumptions of the Ricardian versus the specific-factors model is the following: The marginal productivity of labor is constant in the Ricardian model and declining as production increases in the specific-factors model. Describe one implication of these differences to labor and one to capital (or land) owners.

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Differences in the marginal productivity assumptions between the Ricardian and specificfactors models have the following implications For labor In the Ricardian model with constant marginal productivity trade liberalization does not negatively impact real wages of labor As production shifts to where labor is most productive all workers see the same rise in wages In the specificfactors model ... View the full answer