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Use the Definition of the Demand for Labor as the Marginal

question 10

Essay

Use the definition of the demand for labor as the marginal revenue product of labor to show how the two statements below can explain why there has been a decline in unskilled workers' real wages.
(A)New methods of production are requiring more highly-skilled workers who are more flexible and better able to switch between different tasks.
(B)Global competition in industries that utilize unskilled labor has driven down the prices of the products sold by these industries.


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