Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happens to the equilibrium wage and level of employment in the market?
A) Wage and level of employment increase.
B) Wage increases and level of employment declines.
C) Wage decreases and level of employment increases.
D) Wage and level of employment decline.
A
Economics
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A) may be due to the differential speed of adjustment between exchange rates and prices. B) may occur when international trade involves lags between order and delivery. C) may appear during periods dominated by news or unexpected events. D) All of the above.
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If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p > MC B) MR > MC C) p ? AVC D) All of the above.
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