For a firm in a perfectly competitive labor market, the supply curve of labor is
A) elastic.
B) inelastic.
C) perfectly elastic.
D) perfectly inelastic.
Answer: C
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Sue's Bagel Shop wants to estimate how responsive the demand for bagels is to a change in her cream cheese prices. To accomplish this task, the following data would not be needed:
a. percentage change in bagel prices b. original price of cream cheese c. new quantity of bagels sold d. original quantity of bagels sold e. new price of cream cheese
Who among the following is neither employed nor unemployed?
a. Veronica, who is currently jobless because of the recession but is available for work b. Lily, who is a journalism student working as a news reporter c. Steve, who is a civil engineer working at a construction company d. Kate, who is currently jobless gets unemployment benefits and so is not very eager to look for job
A reduction in the inflation rate would make relative prices
a. less variable, making it more likely that resources will be allocated to their best use. b. less variable, making it less likely that resources will be allocated to their best use. c. more variable, making it more likely that resources will be allocated to their best use. d. more variable, making it less likely that resources will be allocated to their best use.
In which of the following scenarios would the income effect be most likely to be greater than the substitution effect?
A. An increase in the minimum wage B. A tax on fast foods C. An increase in salaries for surgeons D. An increase in wages for day laborers