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This problem is related to the IFT and the envelope theorem. A competitive rm chooses the quantity of labor L to be hired in order

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This problem is related to the IFT and the envelope theorem. A competitive rm chooses the quantity of labor L to be hired in order to maximize prots, taking as given the salary to and the value of a productivity parameter :9. That is, the rm mIax (6f(L) wL). Assume that the production function f (-) is twice continuously dierentiable, strictly increas ing, and strictly concave (i.e., f > U, f\"

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