If the labor supply curve faced by a firm is rising, the marginal factor cost curve of labor must be
A) rising and below the supply curve.
B) rising and above the supply curve.
C) equal to the supply curve.
D) horizontal.
Answer: B) rising and above the supply curve.
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According to the principle of diminishing returns to labor, if the amount of capital and other inputs are held constant, employing additional workers:
A. increases output at an increasing rate. B. increases output at a decreasing rate. C. increases output at a constant rate. D. decreases output at an increasing rate
The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the
A) marginal external cost. B) marginal private cost. C) marginal social cost. D) None of the above answers is correct.
A monopoly firm never incurs a loss as it is the sole supplier of the good in the market
a. True b. False Indicate whether the statement is true or false
To determine whether a nation has an "abundance" of a resource, economists look at:
a. the exports of the nation. b. the imports of the nation. the total quantity of that resource compared with c. the total quantity of the other resource. d. a nation's share of the resource compared with its share of world GDP