The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a ten cent per unit subsidy on the good sold by the firm will cause the firm to
A) demand less labor.
B) demand more labor.
C) raise the wage for workers to $5.10.
D) None of the above.
B
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Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?
Neuroeconomics suggests that the frontal lobe carries out most decision making and strategic thinking takes place in the prefrontal cortex
a. True b. False Indicate whether the statement is true or false
Among the components of a 45-degree (or income) line are consumption and
a. investment b. inventories c. exports d. saving e. imports
A derivative is a:
a. contract derived from a spot market rate. b. fixed exchange rate. c. flexible exchange rate. d. contract between firms for foreign currency.