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The Questions Below Deal with the Gizmo Company, Which Has

Question 85

Multiple Choice

The questions below deal with the Gizmo Company, which has the following production function.
The questions below deal with the Gizmo Company, which has the following production function. -Labor demand is decreasing in the wage because A) the substitution effect is larger than the income effect. B) the income effect is larger than the substitution effect. C) the production function is concave. D) the marginal product of labor is increasing in labor.
-Labor demand is decreasing in the wage because


A) the substitution effect is larger than the income effect.
B) the income effect is larger than the substitution effect.
C) the production function is concave.
D) the marginal product of labor is increasing in labor.

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