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Suppose that firm use units of labor (L) and units of capital (K) in fixed proportion. Then, which of the following is correct based on
Suppose that firm use units of labor (L) and units of capital (K) in fixed proportion. Then, which of the following is correct based on the conditional capital demand?
a) law of demand fails to hold, and capital is neither normal nor an inferior input.
b) law of demand fails to hold, and capital is an inferior input
c) law of demand fails to hold, and capital is a normal input
d) law of demand holds, and capital is a normal input
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