Consider an industry employing skilled technicians and low-skilled workers together with machines to produce a product. A

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Consider an industry employing skilled technicians and low-skilled workers together with machines to produce a product. A new technology comes along that performs the low-skill tasks but needs more maintenance. How would the adoption of this technology affect the following?

a. The wage of skilled technicians

b. A firm’s demand for low-skilled workers

c. The equilibrium in the labor market if the market price of the product increases

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Economics

ISBN: 287201

6th Global Edition

Authors: Daron Acemoglu, David Laibson, John A. List

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