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Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install
Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will
reduce the number of workers you employ
increase the number of workers you employ
reduce the amount of capital you are using
not make any changes since you are already maximizing profit
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