An increase in dividend payments will
A. lead to a decrease in labor supply.
B. either lead to an increase or decrease in labor supply depending on the relative magnitude of the income and substitution effects.
C. have no effect on labor supply.
D. lead to an increase in labor supply.
Answer: A
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A) increasing total B) decreasing total C) increasing marginal D) decreasing marginal E) constant average
Mutual interdependence means that
A) all firms are price takers. B) each firm sets its own price based on its anticipated reaction by its competitors. C) all firms collaborate to establish one price. D) all firms are free to enter or leave the market.