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Suppose that the organization you are working for wantsto increase its annual production, measured in units,by 50%.Also, assume that your organization's output i. is an
Suppose that the organization you are working for wantsto increase its annual production, measured in units,by 50%.Also, assume that your organization's output i. is an increasing function of only capital and labor and ii. thatthe law of diminishing returns to a single factorholds for both capitaland labor Given our assumptions, and holding capital constant, in order to increase output by 50% should your organization increase its annual employment by more, less or by exactly 50%? Explain why
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