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Question: State the Rybczynski Theorem. What would be the effect of immigration on output in the LONG RUN? Use box diagram in which total Labor and capital endowments of the HOME country are represented by axes. Then, expand the Labor axis to reflect immigration. Take shoes and computers as sectors of production and assume K/L ratio to be relatively higher in computers production. Show the same result on output also by using PPF.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92582577

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