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what is the correct answer? The following three isoquants [(1), (2), (3)] describe the long-run substitutability/complementarity between labor and capital to produce a given amount

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what is the correct answer?

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The following three isoquants [(1), (2), (3)] describe the long-run substitutability/complementarity between labor and capital to produce a given amount of output for different production processes. Assume Lo is the initial profit-maximizing amount of labor hired in each of the production processes. (1) (2) (3) K K K Qo Q Lo Lo Lo Now, assume there is an increase in the price of Labor for all three processes. . What process will decrease the amount of capital used? Search Windows Do e e .so O (2) O (3) O (1) and (2) O (2) and (3) X 9

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