A firm purchases more capital equipment, which is a subsitute to labor. We would expect to observe
A. an increase in the wage rate paid for labor by this firm.
B. a rightward shift in the supply curve of labor to this firm.
C. a decrease in the supply of labor for this firm.
D. a decrease in the demand for labor by this firm.
Answer: D
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Use the following graph of demand curves to answer the next question.
Which demand curve is relatively most elastic between P1 and P2?
A. D1 B. D2 C. D3 D. D4
A game of incomplete information is distinct from one of complete information in that players:
a. do not observe each others' actions. b. do not know each others' payoff functions. c. do not know the timing of moves. d. use mixed strategies.
Which of the following mergers would result from the purchase of a paper mill by a textbook publishing company?
a. An interlocking merger. b. A vertical merger. c. A conglomerate merger. d. A horizontal merger.
Price floors are typically imposed to benefit buyers
a. True b. False Indicate whether the statement is true or false