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Widgets are provided by a constant-cost industry. Each firm employs one executive and a variable number of workers. Consider the following two scenarios: Scenario A.

Widgets are provided by a constant-cost industry. Each firm employs one executive and a variable number of workers. Consider the following two scenarios: Scenario A. Executive salaries rise, causing the price of a widget to rise by $5 in the long run. Scenario B. Workers' salaries rise, causing the price of a widget to rise by $5 in the long run. Of the two scenarios, which leads to a larger quantity of widgets per firm in the long run?

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