3804EconomicsMedium
What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry?
Adecreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
Bincrease the demand for fishing boats and increase rental rates on fishing boats
Cdecreases the demand for fishing boats and increase rental rates on fishing boats.
Dincrease the demand for fishing boats and decrease rental rates on fishing boats
Correct answer
A. decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry
Explanation
The correct answer is decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry.