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The Graph Shows a Firm That Buys Its Inputs and Sells

Question 112

Multiple Choice

The graph shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be A) L₀ . B) zero. C) lower than L₀ . D) higher than L₀ . The graph shows a firm that buys its inputs and sells its output in competitive markets. If the firm develops a new technology that increases labor productivity, the equilibrium level of employment for this firm is expected to be


A) L₀ .
B) zero.
C) lower than L₀ .
D) higher than L₀ .

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