The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except
a. what percentage of total costs are made up of labor costs.
b. how much quantity demanded in the output market will be reduced by a higher price.
c. the capital to labor ratio before the wage increase.
d. how easily other inputs can be substituted for labor.
c
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All inferior goods have upward-sloping demand curves.
Answer the following statement true (T) or false (F)
The repo market is most closely related to the
A) federal funds market. B) Treasury bond market. C) Treasury note market. D) commercial paper market.
Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good. B) MR = MC. C) the derivative of the profit function with respect to output is zero. D) All of the above.
If tofu is a normal good, an increase in income will:
a. cause tofu to sell at a lower price. b. increase the production of tofu. c. shift the demand curve for tofu to the left. d. shift the demand curve for tofu to the right. e. rotate the supply curve in a clockwise manner.