The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist

If MRP > MLC, the firm

a. is employing the optimal quantity of labor b. should decrease the quantity of labor it employs c. should lower the wage rate d. should increase the quantity of labor it employs e. should raise the wage rate

Suppose that at a bicycle shop, instead of having each worker assemble an entire bicycle themselves, one person welds the frames, another person works on the braking system, another person works on the tires, and another person works on the gears. This

best demonstrates the concept of A) division of labor. B) microeconomics. C) comparative advantage. D) absolute advantage.