Suppose workers at the bakery discover that a new firm making baseballs came to town and is offering higher wage rates. What will happen in the labor market for bakers?
a. The labor supply curve will shift to the right.
b. Demand for bakers will increase because the MPP of bakers will decrease.
c. The quantity supplied of labor will increase because the wage rate will decrease.
d. The MRP of bakers will increase.
e. The labor supply curve will shift to the left.
E
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In a perfectly competitive market that is in long-run equilibrium, a rightward shift in the market demand curve results in
A) the price falling in the short run. B) the firms' economic profits falling in the short run. C) firms leaving the industry in the long run. D) none of the events listed above.
A flat fee pricing system for MSW services
Use the following forany or all of Questions 11 through 13 below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston. MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q MEC= 0.75Q MEB= 0 whereQ is the number of trash containers serviced per household per month. a. ignores the positively sloped MPC of MSW services b. causes an underallocation of resources to MSW services c. means that demanders pay nothing for MSW services d. provides an incentive for waste reduction
The perfect competitor shown in the graph above is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run breaking even.
Which of the following is NOT a situation providing a potential advantage for Mexico that makes it competitive compared to China in trade with the United States?
A) The product line requires quick turn-around time from or to delivery. B) The need to manage a just-in-time inventory system C) Wages are low and the production process is labor intensive. D) The product is heavy and bulky relative to its final value.