The figure above shows a firm in a perfectly competitive market. The firm will shut down if price falls below

Assume that the labor market for auto mechanics is initially in equilibrium. Which of the following would lead to an increase in both the wage rate and employment for auto mechanics?

a. a decrease in the price of a substitutable input b. a decrease in the price of a complementary input c. an increase in training costs for auto mechanics d. a decrease in wages in an alternate labor market e. a decrease in demand for the output of firms employing auto mechanics

Allen and Ellen both work at Burger Ranch. Allen is paid more than Ellen. Which of the following could explain why Allen is paid more?

a. The manager discriminates against women. b. Allen works the undesirable early morning shift. c. Allen has more experience and so more human capital. d. All of the above could be correct.