Author Question: Assume that as the wage rate rises a worker's substitution effect for leisure is larger than the ... (Read 73 times)

rachel9 · **on:** Jul 1, 2018

Assume that as the wage rate rises a worker's substitution effect for leisure is larger than the income effect. We can conclude that in this region, the worker's

A) labor supply curve will be backward bending.
B) labor supply curve will have the usual upward slope.
C) labor supply curve will be completely inelastic.
D) supply curve will be horizontal.

Question 2

In comparing the Cournot equilibrium with the competitive equilibrium,

A) both profit and output level are higher in Cournot.
B) both profit and output level are higher in the competitive equilibrium.
C) profit is higher, and output level is lower in the competitive equilibrium.
D) profit is higher, and output level is lower in Cournot.