9. Which of the following statements is an example of a Substitution Effect? (A). The firm decides to increase output when wages fall because production costs have fallen. (B). The firm decides to increase output when the price of capital rises because the costs of production have risen. (C). Companies decide to add workers when wages fall because workers are relatively cheaper than other factors of production. (D). The company decides to reduce workers when wages fall because workers are relatively cheaper than other factors of production. (E). All of the above answers are wrong Choose one of the answers from the five choices provided. And please, also provide a brief description, explanation or argument for your choice. Thank you Bartleby!
9. Which of the following statements is an example of a Substitution Effect?
(A). The firm decides to increase output when wages fall because production costs have fallen.
(B). The firm decides to increase output when the price of capital rises because the costs of production have risen.
(C). Companies decide to add workers when wages fall because workers are relatively cheaper than other factors of production.
(D). The company decides to reduce workers when wages fall because workers are relatively cheaper than other factors of production.
(E). All of the above answers are wrong
Choose one of the answers from the five choices provided. And please, also provide a brief description, explanation or argument for your choice. Thank you Bartleby!
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