Firms use incentives to pursue their most fundamental goal, which is to maximize

If the supply of labor ________, real wages rise and the amount of labor employed ________

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand and cost curves for his firm, which competes in a monopolistically competitive market. Kevin will train how many clients per day?

A) 4 B) 6 C) 10 D) between 2 and 4 E) None of the above answers is correct.