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Suppose that the firm has a minimum quantity of employment,N*; that is, the firm can produce no output unless the labour input is greater than

Suppose that the firm has a minimum quantity of employment,N*; that is, the firm can produce no output unless the labour input is greater than or equal toN*. Otherwise, the firm produces output according to the same production function as specified in this chapter (Y=zF(K,N^d)). Given these circumstances, determine the effects of an increase in the real wage on the firm's choice of labour input. As well, construct the firm's demand curve for labour.

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