The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following except
a. what percentage of total costs are made up of labor costs.
b. how much quantity demanded in the output market will be reduced by a higher price.
c. the capital to labor ratio before the wage increase.
d. how easily other inputs can be substituted for labor.
c
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One way the United States has tried to encourage welfare recipients to acquire human capital is by
A) providing a free college education. B) setting a 1-year limit on temporary assistance. C) tax rebates. D) requiring a adult member of the household to either work or perform community service.
Refer to the cost table below. The firm will produce its output only if the price is at least equal to what minimum level?
The table shows cost data for a firm that is selling in a purely competitive market.
A. $3
B. $4
C. $6
D. $9