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Suppose a Constant-Cost Competitive Industry Produces Widgets Using Labor and Capital

Question 78

Multiple Choice

Suppose a constant-cost competitive industry produces widgets using labor and capital in fixed proportions.A firm in the industry faces:


A) a vertical supply curve for labor and capital.
B) a downward sloping supply curve for labor and capital.
C) a horizontal supply curve for labor and capital.
D) an upward sloping supply curve for labor and capital.

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