Refer to Reducing Long-Run Labor Usage. The diagram illustrates the situation where
a. the long-run demand for labor is upward sloping.
b. the scale effect reinforces the substitution effect.
c. the higher wage raises the firm's long-run marginal costs.
d. labor is a regressive factor.
d. labor is a regressive factor.
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An increase in the interest rate in the United States compared to the interest rate in Great Britain will
A) increase the U.S. interest rate differential. B) increase the demand for pounds. C) shift the demand curve for dollars rightward. D) Both answers A and C are correct.
An increase in the value of the U.S. dollar will
A) increase Canadian demand for winter homes in Florida. B) increase the cost of homes in Florida for American buyers. C) reduce Canadian demand for winter homes in Florida. D) reduce the cost of homes in Florida for Canadian buyers.
If the price of salmon increases relative to the price of cod, the demand for:
A) cod will decrease. B) cod will increase. C) salmon will decrease. D) salmon will increase.
Firms in an oligopoly market can potentially earn economic profits. a. In the short run, but not the long run
b. In the long run, but not the short run. c. In both the short run and long run d. In neither the short run nor the long run