A company succumbs to a wage increase demand without any changes in the productivity of labor, price of the product, and the total output sold. Which of the following would happen?
a. Total revenue of the company will fall.
b. Investment by the company will increase.
c. Profit per unit of the product will fall.
d. Average profit per unit will increase.
c
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Economists define efficiency as
A. output maximization. B. the absence of waste. C. input maximization. D. the presence of surplus.
Human capital is equally, if not more, important than physical capital
Indicate whether the statement is true or false
Which of the following would not be considered price discrimination?
a. setting separate rates for residential and commercial uses of electricity b. giving a senior citizen discount at restaurants c. renting recently released videos at a higher price than the old classic videos d. giving children a discount at the movies e. giving students a discount on ski lift tickets
According to liquidity preference theory, if the price level decreases, then
a. the interest rate falls because money demand shifts right. b. the interest rate falls because money demand shifts left. c. the interest rate rises because money supply shifts right. d. the interest rate rises because money supply shifts left.