Buddy is the owner of a firm that bottles beer in St. Louis, Missouri. There are many other such firms in the area. Buddy decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?
a. The higher the wage, the less often his workers will choose to leave his firm.
b. The higher the wage, the lower will be the costs of obtaining needed supplies.
c. The higher the wage, the more he can charge for his beer
d. The higher the wage, the more he will have to monitor his workers for shirking.
a
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The estimated incremental benefits (in thousands of dollars) associated with this new policy are
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions: Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2, where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor. a. 2,100 b. 44,100 c. 90,000 d. 45,900
The Condorcet paradox shows that even if each individual in a group has transitive preferences, the group's collective preferences may not be transitive
Indicate whether the statement is true or false
The aggregate demand curve is negatively sloped because a lower price level
A) reduces the real money supply. B) increases the real money supply. C) reduces aggregate income. D) increases aggregate income.
Mr. Stewart owns the only hardware store in a small Midwestern town. His nearest competition is more than 50 miles away, yet he does not earn any economic profit. Does someone need to explain the economic concept of monopoly to him?