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For a Firm in the Long-Run,an Increase in the Market

Question 25

Multiple Choice

For a firm in the long-run,an increase in the market wage rate will cause it to reduce the employment of labor.With fewer workers,the firm's marginal revenue product for capital


A) shifts downward leading the firm to use less capital.
B) shifts upward leading the firm to use more capital.
C) twists so that is becomes more elastic
D) is not affected.

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