Q
What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?
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A
A. Increase the demand for fishing boats and decrease rental rates on fishing boats
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B
B. Decreases the demand for fishing boats and increase rental rates on fishing boats.
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C
C. Decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
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D
D. Increase the demand for fishing boats and increase rental rates on fishing boats
Correct Answer:
C. C. Decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
