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    Exam 4: Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization
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    Suppose the Representative Firm Suddenly Has Less Capital at Its
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Suppose the Representative Firm Suddenly Has Less Capital at Its

Question 41

Question 41

Multiple Choice

Suppose the representative firm suddenly has less capital at its disposal. What happens to labor demand?


A) It increases.
B) It stays the same.
C) It decreases.
D) We cannot tell.

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