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IF the wage goes up, competitive firms will continue using the same ratio of capital to labor if Multiple choice question. there is no scale
IF the wage goes up, competitive firms will continue using the same ratio of capital to labor if Multiple choice question. there is no scale effect. capital and labor are perfect complements. both of them are "normal" inputs. output decreases
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Macroeconomics
Authors: David Colander
8th edition
978-0078004407, 78004403, 978-0077247171, 77247175, 978-0077307110
