Suppose the supply of labor schedule increases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will
A. hire the same number of workers.
B. substitute capital for labor.
C. hire fewer workers.
D. hire more workers.
Answer: D
You might also like to view...
Which of following groups of countries are all advanced economies?
A) Australia, Brazil, and the United States B) Hong Kong, Japan, France, and the United Kingdom C) Italy, the United States, China, and Russia D) Singapore, Russia, France, and Chad E) Mexico, Canada, Germany, and Egypt
In a market system, consumers exercise consumer sovereignty, which is crucial in determining the types and quantities of goods purchased. True
Indicate whether the statement is true or false
Recall the Application about the Fed's policy of quantitative easing to answer the following question(s). Recall the Application. By the end of the last phase of quantitative easing in late 2014, that value of the Fed's assets was:
A. $1 trillion. B. $2 trillion. C. $3 trillion. D. $4.5 trillion.
In the short run, monopolistically competitive firms find their profit-maximizing quantity by setting price equal to marginal cost.
Answer the following statement true (T) or false (F)