The phenomenon whereby labor decreases in response to a decrease in the wage rate is called
a. the substitution effect.
b. the scale effect.
c. derived demand from a change in wage.
d. the factor regressivity of labor.
a. the substitution effect.
Economics
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The rate-of-return regulated public utility has strong incentive to control cost
Indicate whether the statement is true or false
Economics
If a firm with a 20 percent market share merges with a firm with 5 percent of the market, by how much will the Herfindahl index change? The other firms have 40 percent, 15 percent, 10 percent, and 10 percent shares
a. It rises by 100. b. It rises by 200. c. It falls by 100. d. It falls by 200. e. It rises by 25.
Economics