Higher relative wages for labor tends to
A) increase the supply of labor.
B) decrease the demand for labor.
C) encourage firms to find substitutes, such as automation.
D) accomplish all of the above.
C
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The above figure shows the cost curves for a competitive firm. The firm will incur economic losses if the price is less than
A) $0. B) $5. C) $10. D) $11.
In a perfectly competitive market, a decrease in market demand in a long-run constant-cost industry causes:
A. an increase in price, quantity, and profit in the long run. B. a decrease in price, a decrease in quantity, and a decrease in profit in the short run. C. an increase in price, quantity, and profit in the short run. D. a decrease in price, a decrease in quantity, and a decrease in profit in the long run.
In a perfectly competitive industry, assume the short-run average total cost increases as the output of the industry expands. In the long run, the industry supply curve will:
A. have a positive slope. B. have a negative slope. C. be perfectly horizontal. D. be perfectly vertical.
Linda earns an income of $3,000 per month. She saves 10 percent and spends the remainder on food, lodging, and other expenses. So far, she has managed to save $20,000. What is her consumption per month?
What will be an ideal response?