Social Studies, 23.01.2020 05:31 ccarwile01
Assume that the price of capital equipment, which can be used as a substitute for labor, decreases, and the substitution effect exceeds the output effect. which of the following effects would the declining price of capital have in a perfectly competitive labor market? 1. the demand for labor would decrease. ii. the industry wage would decrease. iii. the cost of production would increase. iv. the price of the product would increase?
Answers: 2
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Assume that the price of capital equipment, which can be used as a substitute for labor, decreases,...
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