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Suppose a country has two specific factors, skilled and unskilled labor. Unskilled labor is an input...

Suppose a country has two specific factors, skilled and unskilled labor. Unskilled labor is an input in the production of toys. Skilled labor is used only in the production of rockets. A third factor, capital, is mobile between the two sectors. Holding all else constant, what is the effect of an increase in the amount of available capital on real wages for both types of workers?

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