Ayushi posted an Question
September 11, 2020 • 01:17 am 30 points
  • UGC NET
  • Economics

.10 if the marginal productivity of labour in agriculture is zero, then the labour supply curve for industry, as assumed by lewis, will be: perfectly elastic an

.10 If the marginal productivity of labour in agriculture is zero, then the labour supply curve for industry, as assumed by Lewis, will be: perfectly elastic Ans backward bending perfectly inelastic upward rising

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Nidhi taparia best-answer

    Option 1 is correct. Lewis in his model of Unlimited Supplies of Labour states that when labour in agriculture has zero MP, it becomes perfectly elastic at prevailing wage rate for the industry.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers