In the table above, the marginal product of the first unit of labor is ________ units of output

Comment on the following statement: "The output effect and the factor substitution effectwork in opposite directions, so it is possible that a decrease in the wage rate can lead to a decrease in the amount of labor hired."

What will be an ideal response?

Ceteris paribus, as the number of substitutes for a good increases, the

A. Price elasticity of demand should become larger. B. Cross-price elasticity of demand should become negative. C. Income elasticity of demand should become negative. D. Price elasticity of demand should become smaller.