When will a wage increase cause a firm to produce more output in the long run?
a. Always.
b. When labor and capital are complements in production.
c. When labor is a regressive factor.
d. Never.
c. When labor is a regressive factor.
Economics
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The M2 aggregate
A) includes M1 plus short-term investment accounts. B) includes M1 plus large-denomination time deposits. C) equals currency plus checking account deposits at commercial banks. D) is the best definition of money purely as a medium of exchange.
Economics
If ten cases of pretzels are sold at a price of $8 each and the marginal product of the last unit of labor is 5, the firm's total revenue is
a. $80 b. $30 c. $50 d. $6 e. $150
Economics