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Initially purely competitive labor market in equilibrium

When this purely competitive labor market is firstly into equilibrium at D0L, S0L, raise in labor productivity will result within equilibrium being attained at: (w) D0L, S0L. (x) D1L, S0L. (y) D0L, S1L. (z) D2L, S2L.

2005_Labor Market Equilibria.png

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