In the Specific Factors Model,which of the Following Will Increase

question 51

Multiple Choice

In the specific factors model,which of the following will increase the quantity of labor used in food production?

• A) an increase in the price of food relative to that of cloth
• B) an increase in the price of cloth relative to that of food
• C) a decrease in the price of labor
• D) an equal percentage decrease in the price of food and cloth
• E) an equal percentage increase in the price of food and cloth

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Definitions:

Largest Firms

Companies that dominate their industries or markets, often characterized by significant revenue, global presence, and market influence.

Profits

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Concentration Ratios

Measures that indicate the extent to which a small number of firms occupy a large market share within an industry.

Covert Collusion

Secret or concealed agreements between firms to fix prices, limit production, or divide markets, in order to increase profits illegally.