As the price level rises relative to costs and the real wage rate falls, profits ________ and the number of firms in business ________

A) decrease; increases
B) decrease; decreases
C) increase; decreases
D) do not change; do not change
E) increase; increases

E

Economics

You might also like to view...

In the above figure, the x-coordinate of point b is

A) 1. B) 2. C) 3. D) 14.

View
Economics

Define the quantity demanded of a good or service

What will be an ideal response?

View
Economics