An increase in the price of labor will, in the short-run, cause a competitive firm's
a. marginal cost to increase, the quantity it sells to decrease and therefore reduce the quantity demand of labor.
b. price of its output to increase, leaving demand for labor unchanged.
c. marginal revenue product of labor to decrease and therefore reduce demand for labor.
d. marginal revenue product of labor to increase and therefore increase demand for labor.
a. marginal cost to increase, the quantity it sells to decrease and therefore reduce the quantity demand of labor.
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Which of the following would be expected to increase the demand for money in the U.S.?
A. Financial investors become concerned about increasing riskiness of stocks. B. The economy enters a recession. C. On-line banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day. D. Political instability decreases dramatically in developing nations.
Suppose the real gross domestic product (GDP) equals $100 billion this year and the nominal gross domestic product (GDP) is $200 billion. This implies that the price level has increased by _____
a. $200 billion b. 50 percent c. $100 billion d. 100 percent e. 200 percent
Which of the following goods are available at highly economical prices because the use of mass production techniques substantially reduces their per unit production costs?
What will be an ideal response?
A decrease in the demand for recreational fishing boats might be caused by
A. a decrease in the number of sports fishers. B. an increase in the price of fishing boats. C. a decrease in the price of fishing boats. D. an increase in the number of sports fishers.