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Title: If a firm hires one worker and eliminates four units of capital, and hires one more worker and ... Post by: myassisblue on Mar 10, 2021 If a firm hires one worker and eliminates four units of capital, and hires one more worker and replaces three more units of capital, keeping output constant, then
▸ workers and capital are perfect substitutes. ▸ the firm is operating inefficiently because capital is more efficient than workers. ▸ the firm is experiencing a diminishing marginal rate of technical substitution. ▸ there are decreasing returns to scale. Title: If a firm hires one worker and eliminates four units of capital, and hires one more worker and ... Post by: sangeseto on Mar 10, 2021 Content hidden
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