Refer to the Following Diagram

question 49

Multiple Choice

refer to the following diagram. Initially, wage rates are WM in Country M and WU in Country U. Subsequent migration results in an equalization of wage rates.
-Migration causes the value of output in Country M to:

• A)fall by area bgc
• B)fall by area ebcf
• C)fall by area W_MbcW_e
• D)rise by W_M - W_e

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