A short-run decrease in the price of a firm's output will typically
A. lead to a movement along the firm's demand for labor curve.
B. not impact the hiring of labor.
C. make the demand for labor more inelastic.
D. lead to lower employment of labor in the competitive firm.
Answer: D
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Northeastern farmers responded to increasing western competition in the 1800s by
a. reducing grain cultivation. b. increasing production of dairy products. c. growing hay to feed city horses. d. moving to the city or the West. e. All of the above.
In the short run, a firm operating in a competitive industry will shut down if price is
a. less than average total cost. b. less than average variable cost. c. greater than average variable cost but less than average total cost. d. greater than marginal cost.
The perfectly competitive firm's supply curve includes
a. that portion of the marginal cost curve above the minimum point on the average variable cost curve b. its economic profit schedule c. that portion of the marginal revenue curve above minimum average variable cost d. that portion of the average total cost curve above minimum average variable cost e. the firm's effective resource demand curve