(Table: Revenues and Costs for Two Industries) Suppose that the table gives payments to labor, land, and capital in themanufacturing and agriculture sectors. Now, suppose that the price of manufacturing goods increases by 10% (Pu), and wagesincrease by 5%. What would we expect to take place?ManufacturingSales revenue-Pu O$100Payments to labor-11L-570Payments to capital Re-K 530AgricultureSales revenue PQ-3100Payments to labor- La 560Payments to land-Rr7-540More output will be produced in the manufacturing sector.The rental rate on capital will declineMore output will be produced in the agriculture sectorO Labor will migrate to the agriculture sector.Attempt-1 Hour

Total revenue refers to the sum of money earned by selling the products by a producer.Total revenue…

(Table: Revenues and Costs for Two Industries Suppose that the table gives payments to labor, land, and capital in the manufacturing and agriculture sectors. Now, suppose that the price of manufacturing goods increases by 10% (Pu). and wages increase by 5%. What would we expect to take place? Manufacturing Sales revenue-Pw Ow-$100 Payments to labor112-370 Payments to capital-Ar-K-530 Agriculture Sales revence PQ-3100 Payments to labor-1-560 Payments to land-Ar 7-540 O More output will be produced in the manufacturing sector. O The rental rate on capital will decline O More output will be produced in the agriculture sector. O Labor will migrate to the agricukure sector.

(Table: Revenues and Costs for Two Industries Suppose that the table gives payments to labor, land, and capital in the manufacturing and agriculture sectors. Now, suppose that the price of manufacturing goods increases by 10% (Pu). and wages increase by 5%. What would we expect to take place? Manufacturing Sales revenue-Pw Ow-$100 Payments to labor112-370 Payments to capital-Ar-K-530 Agriculture Sales revence PQ-3100 Payments to labor-1-560 Payments to land-Ar 7-540 O More output will be produced in the manufacturing sector. O The rental rate on capital will decline O More output will be produced in the agriculture sector. O Labor will migrate to the agricukure sector.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 16RQ: What are the factor payments for land, labor, and capital?

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What are the factor payments for land, labor, and capital?
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