A Corollary to the Rybczynski Theorem Is That, in the Long

question 124

Multiple Choice

A corollary to the Rybczynski theorem is that, in the long run, prices of factors will not be affected by an increase in labor. This is known as:

• A) the Friedman corollary.
• B) the Marshall-Lerner condition.
• C) the factor price insensitivity result.
• D) the Stolper-Samuelson prediction.

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Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Cash Dividends

Payments made by a corporation to its shareholder members from current or retained earnings, usually in the form of cash.

Liability

Obligations or debts that a business owes to external parties, which need to be settled over time through the transfer of economic benefits.