Suppose that firms in an industry use two inputs, labor and capital. If the price of labor increases, then the firms will demand less labor and more capital. True, false or uncertain? Explain your answer.
Answer to relevant QuestionsEconomists Ross Eckert and Richard Leftwich have noted that in the early 1950s, over 60 percent of MBA graduates from leading business schools took their first jobs in manufacturing and 10 percent in investment banking and ...“Kevin (a highly skilled businessman) earns $ 150,000 a year. If he were to return to his native New Guinea (where there are more limited business opportunities), Kevin would be able to earn only $ 5,000 a year. This ...As the owner of a retail store, you would like to be able to pay your sales people lower wages. What problems would you confront if you attempt to establish a cartel among employers to force down wage rates?What factors determine whether a particular economic issue can be adequately analyzed by using a partial rather than a general equilibrium approach?What two characteristics define a public good? Which of the following are public goods: parks, police services, welfare payments to the poor, production of energy, space exploration?
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