Suppose a firm finds that it must raise wages for all of its workers every time it tries to expand its workforce. This means
A. The marginal factor cost curve is below the average cost of labor curve.
B. The firm has market power.
C. The labor market is perfectly competitive.
D. It will produce more than it would in a competitive labor market.
Answer: B
You might also like to view...
A checkable account
A) is a very illiquid asset. B) is one on which the holder can write checks. C) must be traded on the stock exchange. D) cannot serve as a store of value.
When the expenditure approach is used to measure GDP, the major components of GDP are
a. consumption, investment, indirect business taxes, and depreciation. b. employee compensation, rents, interest, self-employment income, and corporate profits. c. employee compensation, corporate profits, depreciation, and indirect business taxes. d. consumption, investment, government consumption and gross investment, and net exports.