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1. Explain why the wage equals the marginal product of labour at an optimum in the firm's problem. And evaluate the following claim in the

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

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