The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a 2 percent cut in all the workers' income tax will cause the firm to
A) demand less labor.
B) demand more labor.
C) raise the wage paid to the worker.
D) None of above.
B
Economics
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Which of the following has the largest impact on short-run movements in exchange rates?
A) growth rate of exports B) growth rate of imports C) investment opportunities D) changes in the trade deficit
Economics
Costume jewelry is produced in a monopolistically competitive market. One producer finds that MR = MC = $3 when output is 700 necklaces. An economist studying this information can conclude that:
a. the producer is charging a price of $3. b. economic profit is $2,100. c. the producer charges a price greater than $3. d. new firms will want to enter. e. this producer should produce more than 700 necklaces.
Economics