Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise.
b. labor demand to fall, the price level to fall, and output to rise.
d. labor demand, output and employment to rise.
c. output to rise but labor demand to fall.
B
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The figure above shows a monopoly's total revenue and total cost curves. The monopoly's marginal revenue equals its marginal cost when it produces
A) 0 units of output. B) 5 units of output. C) 15 units of output. D) 20 units of output.
The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. evaluating the identified performance measures b. avoiding rewards for outcomes that are not included in the performance measures c. demonstrating that evaluators can be influenced with small favors d. identifying the relevant measures on which to evaluate employees
According to the principle of diminishing returns, an additional worker decreases total output.
Answer the following statement true (T) or false (F)
The demand for labor is considered a derived demand since it depends on
A. the supply of labor. B. competitive markets. C. the consumer demand for the output produced. D. the market for capital.