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A firm introduces a new technology that doubles each worker's output. Simultaneously, increased market competition forces the firm to halve its profit share. Given these changes, the firm's real profit per worker will remain unchanged.
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A company successfully lobbies for new regulations that significantly increase the difficulty for new competitors to enter its market. Assuming the company's output per worker remains constant, what is the most likely effect on the company's real profit per worker?
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A firm introduces a new technology that doubles each worker's output. Simultaneously, increased market competition forces the firm to halve its profit share. Given these changes, the firm's real profit per worker will remain unchanged.