Explain the difference between a movement along a given output-per-laborer (or labor productivity) curve and a shift to a new output-per-laborer curve
For a given supply of workers, the only thing that leads to a movement along a given output-per-laborer
curve is capital deepening (an increase in the capital stock). Shifts to a new output-per-laborer curve result
from a change in technology or a change in the quality or quantity of the labor force.
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Right-to-work laws
a. guarantee workers the right to form unions. b. give workers in a unionized firm the right to choose whether to join the union. c. prevent employers from hiring permanent replacements for workers who are on strike. d. prevent workers from being fired because of increases in wages brought about by collective bargaining.
Refer to the data. If the market price for this firm's product is $24, it will produce:
A. 4 units at a loss of $150.
B. 6 units at a loss of $90.
C. 3 units at an economic profit of zero.
D. 4 units at a loss of $138.