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1. Assume two inputs, K and L. Illustrate the following cases with two graphs:
(1) the substitution effect on labor hired due to a wage increase is zero.
(2) the scale effect on labor hired due to a wage increase is zero.
2. Assume two inputs, K and L. Illustrate the following cases with two graphs:
(1) Draw the VMPL and VAPL curves for the case of a perfect-complements production function,
Q = min(K,L).
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