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Switzerland produces both watches and chocolate. Watches are relatively capital intensive in their production, while chocolate is relatively labor intensive. If Switzerland experiences an increase in its labor endowment, according to the Rybczynski theorem:
a. we would expect the production of both watches and chocolate to rise.
b. we would expect the production of watches to decline and that of chocolate to rise.
c. we would expect the production of both watches and chocolate to decline.
d. we would expect the production of watches to rise and that of chocolate to decline.
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Switzerland produces both watches and chocolate. Watches are relatively capital intensive in their p...
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