Question: 1 Assume that labor moves into the agricultural sector and away from the manufacturing sector. This will cause the marginal product of land (MPTA) to

1 Assume that labor moves into the agricultural sector and away from the manufacturing sector. This will cause the marginal product of land (MPTA) to increase and the marginal product of capital (MPKM) to decrease.

a. Does this contradict the assumption we usually make about diminishing marginal product? Explain.

b. Briefly explain the real-life intuition as to why this occurs.

2. Why do economists argue that despite the existence of parties that “lose” from trade in the specific-factors model, that trading makes a country better off?

Step by Step Solution

★★★★★

3.43 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Certainly Lets approach each part of the question step by step Question 1 a Does this contradict the assumption we usually make about diminishing marginal product Explain 1 Understanding Diminishing M... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

We usually think about crowding out as a decrease in private consumption or investment in response to an increase in government purchases. But the idea works in reverse as well, an idea we might call...

Q:

Why does production eventually experience diminishing marginal returns to labor in the short run?

Q:

Why does the marginal product of capital decrease as more capital is added?

Q:

Which type of philosophical reasoning begins with one example and varies it to see how dramatic the change is, which uncovers its most crucial characteristics?

Q:

Distinguish between marketing PR and corporate PR. Explain, using examples, why the techniques used at both levels might be similar if not the same.

Q:

Conversion costs include all of the following except:? LO07 A. wages of production workers B. depreciation on factory equipment C. factory utilities D. direct materials purchased 8. 2.2 Which of the...

Q:

Let A, B, and C be three events in a sample space . Assuming that the following inequalities hold P(A|B) P(C|B) and P(A|B) P(C|B), verify that P(A) P(C).

Q:

AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The companys July 2014 flexible budget shows output levels of 6,500, 8,000, and 10,000...

Q:

I need help with this C++ assignment, I have completed Part 1, I will post below the instructions and modifications needed to be added to my existing code. My existing code will be below the...

Q:

Crockett Corporation, a calendar year C corporation, reports net income of $2,000,000,000 on its 2023 audited financial statements (including financial statement depreciation of $250,000,000). Also,...

Q:

Problems 2 5 Question 12 (5 points) You observe a 4-year annual coupon $1,000 par bond, selling for $935.21 with a yield of 9% and a duration of 3.61 years. If uil rates decline by 150 basis points...

Q:

For Exercises 27-32, refer to functions s, t, and v. Find the indicated function and write the domain in interval notation. (See Example 3) s(x) 27. (s. 1)(x) 31. (sv)(x) = x-2 x-9 x-3 t(x) = bail...

Q:

Demonstrate how the host from computer A identifying the destination of computer G before A can start sending file to the computer. == SWITCH ROUTER SWITCH A B C G H

Q:

Below picture shows a cross section of a pipe, with 90 mm inside diameter (ID), if the pipe outer diameter (OD) is 100 mm. what is the (4) ?pipe cross-sectional area OD 100 mm Pipe cross sectional...

Q:

You are the Cost Accountant of an industrial concern and have been given the following budgeted information regarding the four cost centers within your organization. Department Department Department...

Q:

In the 1930s, Dr. Joseph Rhine tested 500 participants to guess the order in a shuffled deck of cards. Only those participants who guessed correctly moved to the next round. The last participant to...

Q:

Which type of bank accounts can QuickBooks Online Payroll make direct deposits into? Money market account Standard savings account Standard checking or savings account Standard checking account

Q:

The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...

Q:

Denkel is a global company active in segments such as home care, personal care and adhesives. Since its revenues and profits have stagnated in recent years, the board of the directors hired a new CEO...

Q:

Suppose that the inverse demand function (where the demand curve is rearranged so that price is a function of quantity) for movies is p = 120 - Q1 for college students and p = 120 - 2Q2 for other...

Q:

According to Robert Guy Matthews, Fixed Costs Chafe at Steel Mills, Wall Street Journal, June 10, 2009, stainless steel manufacturers increased prices even though the market demand curve had shifted...

Q:

Ann's only income is her annual college scholarship, which she spends exclusively on gallons of ice cream and books. Last year, when ice cream cost $10 and used books cost $20, Ann spent her $250...

Q:

In the law firm Tybo and Associates, there are six partners. Listed next is the number of cases each partner actually tried in court last month. Partner Number of Cases Ruud........ 3 Wu........ 6...

Q:

There are five sales associates at Mid-Motors Ford. The five associates and the number of cars they sold last week are: Sales Associate Cars Sold Peter Hankish....... 8 Connie Stallter ....... 6 Juan...

Q:

The following is a list of 29 hospitals in the Cincinnati (Ohio) and Northern Kentucky region. The hospitals are identified by numbering them 00 through 28. Also included is whether the hospital is a...

Related Book

Microeconomics Theory and Applications with Calculus 3rd edition by Jeffrey M. Perloff