Moving along the supply curve for labor, increases in the quantity of labor result from ________
A) diminishing returns to labor effort
B) a rising cost of leisure
C) a reduced preference for leisure
D) more efficient recruitment of workers
B
You might also like to view...
Many states use container redemption programs to encourage reuse of glass bottles and other recyclable containers
Suppose a state has a current redemption program that imposes a 10-cent per container fee, and then the state increases the fee to 15 cents per container. What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers? A) Optimal quantity increases B) Optimal quantity decreases C) Optimal quantity remains unchanged D) We cannot determine the outcome of this policy change without having more information
If a competitive firm finds that it maximizes short-run profits by shutting down, which of the following must be TRUE?
A) p < AVC for all levels of output. B) p < AVC only for the level of output at which p = MC. C) p < AVC only if the firm has no fixed costs. D) The firm will earn zero profit.