If the wage rate rises,then in the long run,the firm will replace some of its labor with other factors such as capital,even if it keeps its output level constant.This phenomenon is known as

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The phenomenon described in the question is known as the substitution effect. As the wage rate rises, it becomes relatively more expensive to use labor compared to other factors of production. This incentivizes firms to substitute labor with other factors, such as capital, in order to maintain their output levels at a lower cost.

If the Wage Rate Rises,then in the Long Run,the Firm