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Suppose that a firm has an L-shaped (Leontieff or min) production function and it uses 100 workers (L=100) and 50 machines (K=50) to produce the

Suppose that a firm has an L-shaped (Leontieff or min) production function and it uses 100 workers (L=100) and 50 machines (K=50) to produce the desired amount of output. If the wage rate drops, the firm will increase the number of workers and decrease the amount of capital in order to maximize profits

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