Social Studies, 30.11.2019 06:31 BABA3724
Achange in an input price will alter both production costs and the profit-maximizing output. thus a decline in the price of capital will reduce production costs, increase the profit-maximizing output, and thereby increase the demand for labor. this describes the:
a. output effect.
b. substitution effect.
c. idea of derived demand.
d. law of diminishing returns.
Answers: 2
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Achange in an input price will alter both production costs and the profit-maximizing output. thus a...
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