Now the government decides to give a wage subsidy to firms for employing low- skilled workers of $1 per unit…

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Now the government decides to give a wage subsidy to firms for employing low- skilled workers of $1 per unit of labour input. The meat-processing industry only employs low-skilled workers, and the effective wage rate (market wage – subsidy) for both KK and MM is $4. For the moment, assume that the production functions are the same as originally (KK is not more efficient that MM):

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