If a firm decreases its capital stock, real wages will likely ________ and the equilibrium quantity of labor will likely ________

A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease

C

Economics

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Demand and supply in the wheat market are given by:

QD = 2000 - 1000 P and QS = -500 + 1000 P where Q is millions of bushels and P is price per bushel. a. Find the equilibrium price and quantity. b. Suppose that the government wishes to support farm income and thus sets a price floor of $1.50/bushel. Find the size of the farm surplus. c. What is the cost of this program to the government?

Economics

Homo economicus is all of the following EXCEPT:

A. well-informed. B. narrowly self-interested. C. cognitively naive. D. highly disciplined.

Economics