If the demand for labor ________, real wages rise and the amount of labor employed ________

A decrease in the capital–labor ratio would result in: a. higher labor productivity because labor does more work

b. lower labor productivity because labor is working with relatively less capital. c. higher labor productivity because labor is producing less capital and more of other goods. d. lower labor productivity because more capital is available. e. higher labor productivity because more capital is available.

In a competitive market, maximum efficiency is achieved because of:

A.) Competitive pressure on prices. B.) Differentiated products. C.) High barriers to entry. D.) Significant market power.