Explain how the optimal usage of the variable input, labor, will change in response to the following changes in the short-run:
(a) A drop in the price of the good or service that the firm sells
(b) A drop in the hourly wage
(c) A decline in the productive efficiency of labor

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The Answer of Explain how the optimal usage of the variable input, labor, will change in response to the following changes in the short-run:
(a) A drop in the price of the good or service that the firm sells
(b) A drop in the hourly wage
(c) A decline in the productive efficiency of labor

Explain How the Optimal Usage of the Variable Input, Labor