The Slutsky decomposition of the effect of the real wage on a person's labor supply decision suggests that the negative income effect of such a wage change will be larger:
a. the smaller is the quantity of labor supplied and the smaller is the effect of non-labor income

Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour

Suppose that we observe Krystal staying open 5 hours and her marginal benefit of staying open per hour is $36. If she is following the marginal principle, Krystal should A) stay open 1 more hour. B) stay open 2 more hours. C) stay open 1 fewer hour. D) stay open 2 fewer hours.

Costs paid in money to hire a resource is

A) normal profit. B) an implicit cost. C) an explicit cost. D) an alternative-use cost. E) economic profit.