Which of the following statements concerning factor mobility is FALSE?
A) The allocation of labour tends to depend more on non- monetary considerations than does the allocation of either land or capital.
B) Once it is in place, a factory designed and built for a specific purpose is highly mobile.
C) The elasticity of the supply of labour to any particular use is likely to be greater in the long run than in the short run.
D) Factor mobility is an important determinant of economic rent.
E) Land is a mobile resource in an economic sense, because it has many alternative uses.

Question

Quizplus · Accepted Answer

Once a factory is designed and built for a specific purpose, it is usually not highly mobile. It would require significant costs to dismantle, transport, and reassemble the machinery and infrastructure, making it a less mobile factor of production compared to capital and labor.

Which of the Following Statements Concerning Factor Mobility Is FALSE