Answer the following statement(s) true (T) or false (F)
1. When labor and capital are complements in production, a higher wage will cause a firm to use more capital in the long run.
2. When a firm's long-run demand curve for labor is derived, the amount of capital employed is held constant.
3. The substitution effect of a rise in the wage may increase or decrease the firm's employment of labor.
4. Derived demand for an input is the process by which individual firm's demand for labor are aggregated to get the industry demand for labor.
5. The substitution effect on labor always decreases the amount of labor employed when the wage rate goes up.
1. False
2. False
3. False
4. False
5. True
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The set of collectively held beliefs, values, and norms among the members of a firm that influence individual behavior is referred to as
A) network values. B) horizontal values. C) implicit contracts. D) corporate culture.
Capital charges equal the company's invested capital divided by the weighted average cost of capital
Indicate whether the statement is true or false