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2. Suppose a purchases labor in a competitive labor market and sells its product in a competitive product market. The rm's elasticity of demand for
2. Suppose a purchases labor in a competitive labor market and sells its product in a competitive product market. The rm's elasticity of demand for labor is 0.4. Suppose the wage increases by 5%. (a) What will happen to the number of workers hired by the rm? (b) What will happen to the marginal productivity of the last worker hired by the rm
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