A company succumbs to a wage increase demand without any changes in the productivity of labor, price of the product, and the total output sold. Which of the following would happen?
A. Total revenue of the company will fall.
B. Investment by the company will increase.
C. Profit per unit of the product will fall.
D. Average profit per unit will increase.
Answer: C
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The GDP deflator is a broader measure of the price level than the CPI because
A) it covers sales tax. B) it covers rents. C) it covers investment. D) it factors out fluctuations in seasonal items.
A _____ requires workers to comply with orders from a boss, who need not consult them when making decisions, and to be paid for their cooperation
a. residual claimant b. hierarchy c. shareholder d. cooperative
Suppose Chip's Chips produces bags of potato chips that sell for $3 a bag. What was the total revenue for Chip's Chips?
A. Cannot answer this question without knowing the quantity of bags sold. B. Cannot answer this question without knowing the cost per bag. C. Cannot answer this question without knowing the cost per bag and the quantity of bags sold. D. Cannot answer this question without knowing what market share they hold.
The adoption of widespread use of computers contributed to the productivity speed-up from 1995 to 2000.
Answer the following statement true (T) or false (F)