Author Question: If the firms in an industry could take advantage of a reduced wage, how would one best describe the ... (Read 19 times)

michelleunicorn · **on:** Jul 1, 2018

If the firms in an industry could take advantage of a reduced wage, how would one best describe the firms' demand for labor? The MRPL

A) schedule would remain unchanged, and the firms would hire more labor at the lower wage.
B) schedule would shift to the left and the firms would move down the new schedule.
C) schedule would shift to the right and the firms would move down the new schedule.
D) none of the above

Question 2

At every output level, a firm's short-run average cost (SAC) equals or exceeds its long-run average cost (LAC) because

A) diminishing returns apply in the short run.
B) returns to scale only exist in the long run.
C) opportunity costs are taken into account in the short run.
D) there are at least as many possibilities for substitution between factors of production in the long run as in the short run.
E) none of the above