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Suppose the Current Level of Output Is 5000 and the Elasticity

Question 75

Multiple Choice

Suppose the current level of output is 5000 and the elasticity of output with respect to labor is 0.7.A 10% increase in labor would increase the current level of output to


A) 5035.
B) 5070.
C) 5350.
D) 5700.

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