In the Long Run, a Decrease in the Competitive Wage

In the long run, a decrease in the competitive wage will be associated with which of the following?

A) A substitution effect in favor of employing more capital.
B) A scale effect in favor of employing more labor.
C) More employment if the wage decrease was a result of a decrease in the demand for labor.
D) Less employment if the wage decrease was a result of an increase in the supply of labor.
E) An increase in the output price.

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