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From the following information calculate the total input shares of labor and capital in each dollar of cloth output:

2453_Input share of labor and capital.jpg

Cloth is the only product that this country exports. The total input share of labor in producing $1.00 of import substitutes in this country is $0.55, and the total input share of capital is $0.45.

Is this trade pattern consistent with the fact that this country is relatively labor-abundant and capital-scarce?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91968351

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