An increase in the demand for houses
a. increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
b. increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
c. decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
d. decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
a
You might also like to view...
In the 2-factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked when
A) there is no factor substitution in production. B) the opportunity cost of production is constant. C) there are unemployed factor resources. D) a country does not engage in trade. E) transportation costs are very high.
Excess capacity typically occurs
a. in the short run in perfect competition b. in the short run in monopolistic competition c. in long-run equilibrium in perfect competition d. in long-run equilibrium in monopolistic competition e. usually in markets experiencing an increase in demand