A competitive firm produces notebooks which sell in the market at $2 each. The firm hires 40 workers. If the market price of the notebooks increases to $3.5 each, which of the following statements is true?
a. The firm's labor demand curve will become flatter.
b. The firm's labor demand curve will shift outward parallel to itself.
c. The firm's labor demand curve will shift outward parallel to itself.
d. The firm's labor demand curve will become steeper.
B
Economics
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A) $2.00 B) $2.25 C) $2.50 D) $3.00
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_____ is the practice of using extra resources to compete for obtaining monopoly, and leads to _____
a. X-inefficiency; a deadweight loss b. Rent seeking; a deadweight loss c. X-inefficiency; a loss in producer surplus d. Rent seeking; a loss in producer surplus
Economics