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Changes in the price of labor will result in both substitution and scale effects that determine what will happen to a firm's employment of both
Changes in the price of labor will result in both substitution and scale effects that determine what will happen to a firm's employment of both capital and labor in the long run. Give an example of a production process where you think the substitution effect will most likely dominate the scale effect. In addition, give an example of a production process where you think the scale effect will most likely dominate the substitution effect. Explain your reasoning clearly
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