The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each

Without productivity growth, what is the long run the effect of labor migration?

a. There will be an increase in production in the sector using labor (or capital) intensively. b. There will be clear gains to owners of capital versus labor. c. There will be clear gains to labor versus owners of capital. d. There will be a shift of world resources toward the highincome nations.

In the long run, equilibrium positions that arise in both monopolistically competitive and perfectly competitive markets are

A) MR = MC and P = MC. B) P = ATC and P = MC. C) MR = MC and P = ATC. D) MR = MC = P.