An efficient allocation of resources is reached in the figure above when output equals

A monopolist union that desired to maximize its total wage bill ( ) would offer that quantity of labor for which

a. labor's marginal productivity is zero. b. labor's wage falls to zero. c. the quantity of labor hired is as great as possible given the firm's demand curve. d. the marginal revenue from providing one more worker to the market is zero.

In general, an increase in the price of a good:

A. will cause the substitution effect to be bigger than the income effect. B. will cause the income effect to be bigger than the substitution effect. C. will cause both an income and substitution effect. D. usually will have no effect.