Consider the labor market, predict which of the following create an incentive for investment in capital?

Name: Consider the labor market, predict which of the following create an incentive for investment in capital?
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Question

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Higher wages create an incentive for investment in capital because it makes labor more expensive than capital. To substitute for the high cost of labor, firms will invest in capital in order to increase productivity and reduce dependence on labor.

Consider the Labor Market, Predict Which of the Following Create