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Now consider the long run for questions f-j. Suppose there are two industries: shoes (labor-intensive) and computers (capital-intensive). f. Which model do we use to analyze migration in the long run? g. According to the long run model you specified in part (f), what is the effect of immigration on wages? Explain. h. How is additional labor allocated between the two industries? i. What is the effect on rental on land and capital? j. What is the effect on output in each industry? Explain.

Q&A Education