Suppose domestic (abbreviated below as dom) and foreign (abbreviated below as for) labor are the only two inputs in the

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Suppose Domestic Abbreviated Below As Dom And Foreign Abbreviated Below As For Labor Are The Only Two Inputs In The 1 (62.42 KiB) Viewed 22 times

Suppose domestic (abbreviated below as dom) and foreign (abbreviated below as for) labor are the only two inputs in the production function of a firm. The output market is currently in equilibrium, meaning MPdom MP for Wdom w for Suppose now a shock increases the marginal product of foreign labor, but had no impact on domestic labor. If wages remain the same as before the shock, what will happen to the employment of domestic and foreign labor? O The firm will hire more domestic workers and fewer foreign workers O The firm will hire more domestic workers, but will continue to hire the same number of foreign workers The firm will hire more foreign workers and fewer domestic workers The firm will hire more foreign workers, but will continue to hire the same number of domestic workers