Assume that the labor market is perfectly competitive. An increase in the productivity of labor
A) causes the marginal factor cost of labor to decrease.
B) generates a lower wage rate.
C) causes an increase in the demand for labor.
D) causes a reduction in the demand for labor since each worker is now more productive.
Answer: C
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Which of the following will tend to occur if price floors are imposed on a product?
a. persistent surpluses b. problems of disposal of goods c. disguised discounts developing to eliminate excess production d. overinvestment in the industry e. All of the above are correct.
What curve shows the quantity of goods and services that firms choose to produce and sell at each price level?
The most common way for workers to hold market power is when:
A. there are a lot of them. B. they compete for minimum wage. C. they are unionized. D. a monopsony exists.
Your sister always brags about how savvy of a grocery shopper she is. She believes that she saves lots of money by paying with coupons and making her grocery purchases at multiple stores to get the lowest prices on all goods. She may overestimate her savings because:
A. she does not count the cost of the gas used driving extra miles to multiple grocery stores. B. she does not count the value of the time it took to sort and clip coupons as a cost. C. she does not count the value of the extra time it takes to stand in multiple lines at multiple stores and use multiple coupons compared to a trip to one store with no coupons. D. All of these.