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- 3.
- A.
- The technological progress has improved the productivity and it has caused the marginal productivity to increase. As a result, their real wages will increase due to the increase in marginal productivity as proposed by the neoclassical approach.
- B.
- Here, the real wages are measured in terms of the agricultural produce or output, produced by the farmers.
- C.
- Productivity remains constant. It means that marginal productivity has not changed. As a result, the real wage of the barbers will not change and remained as before.
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