With a fixed proportions-type technology l-shaped isoquants, Ask an Expert

Economics

With a fixed proportions-type technology (L-shaped isoquants), a wage increase will cause:

(a) a substitution effect but no scale effect

b) a scale effect but no substitution effect

(d) neither a scale or substitution effect

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707279

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