Which of the following is a long-run impact of an increase in the wage?
A. The quantity demanded of labor increases because there are no diminishing returns.
B. The quantity demanded of labor increases because the marginal revenue product curve shifts upward due to a higher product price.
C. The quantity demanded of labor decreases because firms face a higher degree of diminishing returns.
D. The quantity demanded of labor decreases because firms will have an incentive to use more of other inputs instead of labor.
Answer: D
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