Bauxite is used for making aluminum. Which of the following will happen if bauxite prices fall, assuming all else equal?
A) The labor demand curve of aluminum manufacturers will shift to the right.
B) The labor demand curve of aluminum manufacturers will shift to the left.
C) Aluminum manufacturers will move to a higher point along their labor demand curves.
D) Aluminum manufacturers will move to a lower point along their labor demand curves.
A
You might also like to view...
Suppose you go to a high school and identify groups of students sitting at different lunch tables. To you it appears that everyone on the football team sits at one table, everyone who gets really high grades sits at another table, everyone who is in the drama club sits at another table, and so on. This outcome could be
A) the result of everyone preferring to sit at a table with dissimilar students, but not want to be at a table if he or she is in a 30 percent minority or less. B) because people naturally discriminate against (and make feel unwelcome) those people who are not like them. C) because the school authorities have instituted a one-week experimental plan to keep students segregated (at lunch) according to certain key interests. D) b and c E) all of the above
Excess capacity is a characteristic of monopolistically competitive firms. What does excess capacity mean?
A) It means that firms do not produce the output level that corresponds to the minimum point on their average total cost curves. B) It means that firms hire more than the minimum number of workers needed to produce the profit-maximizing level of output. C) It means that firms produce with inefficient combinations of resources. D) It means that firms build plants that are not large enough to achieve minimum efficient scale.