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The Size of the Reduction in Quantity of Labor Hired

Question 32

Multiple Choice

The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except


A) what percentage of total costs are made up of labor costs.
B) how much quantity demanded in the output market will be reduced by a higher price.
C) the capital to labor ratio before the wage increase.
D) how easily other inputs can be substituted for labor.

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