Question: Please help, thank you. Consider the specific factors model. The Home country makes A and M goods. Labor is the mobile factor, land is the

 Please help, thank you. Consider the specific factors model. The Home

Please help, thank you.

country makes A and M goods. Labor is the mobile factor, land

Consider the specific factors model. The Home country makes A and M goods. Labor is the mobile factor, land is the specific factor for the A good, and capital is the specific factor for the M good. The Home country's PPF is as follows. QA 4 A B QM Determine whether each statement below is T/F, and then briefly explain why. (1) The opportunity cost (OC) of the A good (in terms of M) is lower at A than at B. (2) The marginal product of labor in the M industry is higher at A than at B because of diminishing returns. (3) The relative price of the M good (with respect to the A good) is higher at A than at B

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