Each firm’s capital stock is fixed in the short run. Therefore, if the price of capital increases, then in the short run the market demand curve for labor in a perfectly competitive market will
A. shift inward.
B. be unaffected.
C. shift outward.
D. change slope.
Answer: B
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A) below; surplus B) below; shortage C) above; shortage D) above; surplus E) equal to; surplus
In Problem 15, under what conditions would GM stop producing the Chevy Volt and exit the market for electric cars. Explain your answer
What will be an ideal response?
Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the
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In the specificfactors model, how will immigration affect the sending country's production possibilities frontier?
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