Author Question: As wages rise, the substitution effect induces households to A) choose leisure rather than ... (Read 101 times)

anshika · **on:** Jun 29, 2018

As wages rise, the substitution effect induces households to

A) choose leisure rather than supplying labor in the labor market.
B) choose supplying labor in the labor market rather than engage in leisure.
C) reduce the opportunity cost of leisure.
D) reduce the economic rent from leisure.

Question 2

The unregulated, single-price monopolist illustrated in the figure above makes an economic profit of

A) zero.
B) 8.00 per day.
C) 10.00 per day.
D) 40.00 per day.