Each workers get paid $5000 a month. You can bring on or layoff workers each month based on needs. If 2 workers are hired then:
Answer: Labor costs are $10,000 and it is considered an explicit variable cost
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Long-run unemployment in the classical model is considered to be impossible because
A) flexible prices and wages keep workers fully employed. B) the government will intervene to aid the unemployed. C) job placement and training programs are rampant in the United States. D) the labor supply is horizontal.
Behavioral economics helps explain why customers ________ at J.C. Penney
A) responded negatively to both sales and coupons and the policy of everyday low prices B) were equally happy with sales and coupons and the policy of everyday low prices C) favored the policy of everyday low prices and not sales and coupons D) favored sales and coupons and not the policy of everyday low prices
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. firms will have to offer higher wages to attract the workers they need. C. there won't be enough workers willing to work at that wage. D. All of these statements are true.
If demand for a good is price elastic, it must also be income elastic
a. True b. False Indicate whether the statement is true or false