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Suppose that the production function had constant returns to labor ( = 0), so that the marginal product of labor is given by M P
Suppose that the production function had constant returns to labor ( = 0), so that the marginal product of labor is given by M P N = A. Derive the demand curve for labor. How does it dier from the one in the text? How would this aect the determination of an equilibrium in the labor market?
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