Assignment 3 Changes in the price of labor will result in both substitution and scale effects that determine what will happen to a firm’s employment of both capital and labor in the long run. Give an

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Assignment 3

Changes in the price of labor will result in both substitution and scale effects that determine what will happen to a firm’s employment of both capital and labor in the long run. Give an example of a production process where you think the substitution effect will most likely dominate the scale effect. In addition, give an example of a production process where you think the scale effect will most likely dominate the substitution effect. Explain your reasoning clearly.

You should be able to write at least 500 (no more than 750) words for the whole assignment with Arial 12 point font, conventional margins, and single-spaced.

Assignments must be submitted with APA Format as is established in the course syllabus under APA Format Resources as presented in the APA Sample Paper.

Analysis and Conclusion must reflect the student’s own words.

The conclusion must include the student’s point of view rather than what the paper includes.

Plagiarism won’t be tolerated and will be penalized with a 0-grade point for the assignment.

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