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Refer to the figure. The market wage is initially W 1 and the firm is initially at Point B . Labor supply increases from S 1 to S 0.

Refer to the figure. The market wage is initially W1 and the firm is initially at Point B. Labor supply increases from S1 to S0. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.

A.F

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B.E

C.C

D.A

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