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1- In the graph given above assume that the firm starts on isocost line C1 and at point A. Price of labor falls and the
1- In the graph given above assume that the firm starts on isocost line C1 and at point A. Price of labor falls and the isocost line shifts to C2. Where will the new cost minimization point lie., if, after the change in price of labor, at the new point the firm uses more labor and less capital compared to point A. Please draw the new isoquant and show the new equilibrium point.
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