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The Labor Supply Curve Starts to Bend Backward at the Point

Question 141

Multiple Choice

The labor supply curve starts to bend backward at the point where


A) the total utility of leisure exceeds the total disutility of labor.
B) the marginal utility of additional income becomes zero.
C) the income effect comes to dominate the substitution effect.
D) the substitution effect comes to dominate the income effect.

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