which one is correct?

Assume a specific factors model where labor (L) is the mobile factor used in the food and clothing industry. In addition, the food sector uses land (T) as a specific factor and the clothing industry uses capital (K) as a specific factor. The figure below illustrates the production functions in both sectors, the overall labor allocation and the production possibility frontier (PPF). Production function food Economy's production QF possibility frontier OF = QF(T, LF) 2 LF Qc Qc = Qc(K, LC) Economy's allocation of labor Lc Production function clothing Assume that the economy moves from state 1 to state 2. Which of the following statements is true? Select one alternative: O Labor is shifted from the clothing industry into the production of food. O The economy cannot use all available labor. O The production of food decreases. O The marginal return of labor in the food sector increases