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Suppose we believe that increases in the average hourly wage of workers decrease a firm's profit, but increases in average worker productivity raise a firm's

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Suppose we believe that increases in the average hourly wage of workers decrease a firm's profit, but increases in average worker productivity raise a firm's profit. We then hypothesize the following relationship:

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PROFIT = Bo + B,WG + B2AP, where PROFIT is the firms' profit, WG is the average hourly wage of workers, and AP is the average worker productivity. If our belief is correct, then we should find: A. Po > O; B, 0; B, 0

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