If the Wage Rate Rises and There Is a Net

question 36

Multiple Choice

If the wage rate rises and there is a net decrease in the use of capital by a firm

• A)the substitution effect outweighed the output effect.
• B)the output effect outweighed the substitution effect.
• C)the substitution and output effects were equal.
• D)there is no way to determine the relative strengths of the output and substitution effects.

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Competitive Advantage

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Work that is planned and executed with a long-term goal in mind, often to achieve a competitive advantage.