Labor Economics
7th Edition
ISBN: 9780078021886
Author: George J Borjas
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 4P
(a)
To determine
Explain the effect of substitution effect in firm’s employment and capital change.
(b)
To determine
Explain the direction in which the scale effect changes the firm’s employment and capital stock.
(c)
To determine
Explain that preference of firm in the selection of labor and capital.
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Can you show me the answers for parts a and b? Thanks.
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What are the answers for a,b,c,d? Are they supposed to be numerical answers or in terms of a variable?
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