Author Question: Say that Japanese firms commit to avoid laying off their employees when demand for their products is ... (Read 79 times)

crazycityslicker · **on:** Jun 30, 2018

Say that Japanese firms commit to avoid laying off their employees when demand for their products is low, but American firms often lay off workers when demand is low. As a result, ceteris paribus, we would expect Japanese firms to:
a. face more elastic demand curves than American firms.
b. have relatively greater variable costs than American firms.
c. continue to produce at some prices at which American firms would shut down.
d. shut down at prices at which American firms would continue to operate.

Question 2

Suppose a commodity market is initially in equilibrium. An increase in the nation's skilled labor force then lowers the marginal cost of producing each unit of output. Which of the following changes will be observed?
a. The demand curve will shift upward
b. The supply curve will shift downward
c. The demand curve will shift downward
d. The supply curve will shift upward