Firms may react to a payroll tax by
A. shifting to more capital intensive techniques.
B. increasing workers' wages.
C. increasing their output.
D. substituting labor for capital.
Answer: A
Economics
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In deciding whether to operate in the short run, the firm must be concerned with the relationship between price of the output and
A) total cost. B) average variable cost. C) total fixed cost. D) the number of buyers.
Economics
In order to maximize profit, a perfectly competitive firm should select the level of output where
a. marginal revenue equals price b. marginal cost equals marginal revenue c. price exceeds marginal cost d. price exceeds marginal revenue e. total revenue equals total cost
Economics