If the price of labor increases, the typical perfectly competitive firm in the short run will
A. hire the same labor and produce the same output.
B. produce more output.
C. hire less labor.
D. hire more labor.
Answer: C
Economics
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Financial innovation has caused
A) banks to suffer declines in their cost advantages in acquiring funds, although it has not caused a decline in income advantages. B) banks to suffer a simultaneous decline of cost and income advantages. C) banks to suffer declines in their income advantages in acquiring funds, although it has not caused a decline in cost advantages. D) banks to achieve competitive advantages in both costs and income.
Economics
An increase in interest rates will cause investment to
A) increase. B) decrease. C) not change. D) move erratically, depending on the interest rate effect on saving.
Economics