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1. Explain why the wage equals the marginal product of labour at an optimum in the firm's problem. [3 points] 2. Evaluate the following
1. Explain why the wage equals the marginal product of labour at an optimum in the firm's problem. [3 points] 2. Evaluate the following claim in the context of the static general equilibrium model with production. That is, state whether the statement below is TRUE, FALSE, or UNCERTAIN, and provide a brief justification. [3 points] "An increase in the wage causes consumption to rise."
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