The wage rate will fall and firms will increase employment to the point where MRP equals the new wage rate if
A. the supply of labor increases.
B. the demand for labor increases.
C. the demand for labor decreases.
D. the supply of labor decreases.
Answer: A
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A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
The above figure shows the payoff matrix facing an incumbent firm and a potential entrant. The potential entrant cannot earn a profit if the incumbent
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Governments choose to pursue industrial policy to:
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Changes in the value of stocks may play a big role in the consumption decisions of individuals. How would changes in the stock market affect the consumption function?