In order to obtain the scale effect of a wage change:
A) One moves either up or down the labour demand curve.
B) One traces the change of the quantity demanded of labour through a parallel shift in the isocost line.
C) One traces the change in output as firms respond to it.
D) One needs to first know the wage elasticity of demand for labour.
E) One traces the change in the quantity demanded of labour by moving along an isoquant curve as the prices change.
Correct Answer:
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