A country uses capital and labour to produce two commodities, motorcycles and bread, where the production of motorcycles is capital-intensive and bread is labour-intensive at any factor price. Then under the assumption of constant returns to scale and full employment, an increase in the supply of labour at constant commodity prices will lead to
A. An absolute increase in the production of motorcycles
B. An absolute increase in the production of bread
C. An absolute decrease in the production of motorcycles
D. An absolute decrease in the production of bread
In light of the above statements, choose the most appropriate answer from the options given below
Tap an option to check your answer.