An increase in the supply of labor
a. increases the equilibrium wage and increases the value of the marginal product of labor.
b. increases the equilibrium wage and decreases the value of the marginal product of labor.
c. decreases the equilibrium wage and increases the value of the marginal product of labor.
d. decreases the equilibrium wage and decreases the value of the marginal product of labor.
d
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Suppose that Country A and Country B each had the same per capita real Gross Domestic Product (GDP) of $10,000 in 2008
Country A's per capital real Gross Domestic Product (GDP) had a growth rate of 3 percent per year and Country B's per capital real Gross Domestic Product (GDP) had a growth rate of 4 percent per year. By 2013, the per-capita real Gross Domestic Product (GDP) for the two countries, respectively, were A) $10,300 and $10,400. B) $11,593 and $12,167. C) $14,000 and $16,000. D) $11,941 and $12,653.
Comment on the following statement: "The demand facing a firm in perfect competition is less elastic than the demand facing a firm in monopolistic competition."
What will be an ideal response?