Suppose That the Wage Is $20 Per Hour in a Two-Sector

question 113

Short Answer

Suppose that the wage is $20 per hour in a two-sector (manufacturing and agriculture) specific-factors model. Currently, the prices of manufactured and agricultural outputs are $5 and $1, respectively; the marginal product of labor in the manufactured sector is six units per hour; and the marginal product of labor in the agricultural sector is 10 units per hour. What will happen to the rentals on land and capital?

---

Definitions:

Hospital Records

Documents that contain detailed accounts of a patient's medical history, treatments received, and progress notes, maintained by healthcare institutions.

Psychotic Symptoms

Experiences that indicate a loss of contact with reality, such as hallucinations or delusions.

Schizophrenia

A psychiatric disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Medication

Substances used to diagnose, treat, or prevent illness and disease, aiding in improving health or managing symptoms.