The scale effect


The scale effect is

(a) the change in output due to a change in the wage rate

(b) the change in labor demand due to a change in the size of the firm's capital stock

(c) the change in labor demand due to the substitution of capital for labor in response to a wage change

(d) the change in labor demand due to a change in the level of output resulting from a wage increase or decrease

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Business Economics: The scale effect
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