When factors of production are not fixed (as in the long run) and labor immigrates, capital will:
a. remain fixed because capital is never mobile.
b. increase in the capitalintensive industry.
c. move to the higher productivity use in the labor intensive industry until returns are again equalized.
d. become idled as owners of capital seek more profitable opportunities.
Ans: c. move to the higher productivity use in the labor intensive industry until returns are again equalized.
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