Labor demand curves are homogeneous of degree zero.
Answer the following statement true (T) or false (F)
True
Rationale:
is homogeneous of degree zero, it means that 
In other words, if wages and prices increase by the same proportion, labor demand remains unchanged. The slope of isoprofits is (w/p) -- so the slope does not change as both w and p increase by the same proportion -- which means the profit maximizing production plan has not changed.You might also like to view...
In the market for their services, workers face a trade-off between ________
A) higher and lower wage jobs B) equilibrium and non-equilibrium solutions C) labor and leisure D) diminishing and increasing marginal productivity
Suppose that initially there is no public debt. Using the above table, the public debt over this four year period would have
A) increased by $215. B) decreased by $100. C) increased by $1,375. D) decreased by $1,590.
If the interest rate in the Mexican economy increases, then the most likely outcome would be that, in Mexico, the
a. economy will move to a new point along its existing consumption curve b. consumption curve will shift upward c. consumption curve will shift downward d. investment curve will shift upward e. economy will move to a new point along its existing investment curve
________ protect property rights.
A. Injunctions and liability rules B. Bargaining and negotiation C. Taxes and subsidies D. Rivalry and excludability