Suppose that firms in an industry use two inputs, labor and capital. If the price of labor

Question:

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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

See More Books

Question Posted: Nov 14, 2014 08:29 AM

See More Questions

Suppose that firms in an industry have identical cost structures and the industry is in long-run equilibrium. Explain how the profit motive could lead to lower market prices.
If the price of labor increases by 20 percent, but all other input prices remain the same, would the long-run total cost at a particular output level go up by more than 20 percent, less than 20...
True or False: When all firms in an industry charge the same price, this is evidence of collusion.
A room is 6 m by 5 m by 3 m. (a) If the air pressure in the room is 1 atm and the temperature is 300 K, find the number of moles of air in the room. (b) If the temperature rises by 5 K and the...
What strategic emphasis should be used by institutions in the growth stage of the retail life cycle compared with the emphasis by institutions in the maturity stage?
Norton Co. had the following amounts related to its pension plan in 2010. Actuarial liability loss for 2010 $28,000 Unexpected asset gain for 2010 18,000 Accumulated other comprehensive income (G/L)...
Your product is clearly not as good as the competition. The customer has been loyal to your company for years, but you will not come out with a replacement of your existing equipment for at least a...
Donner Company began its operations in September of the current year. During September, the company paid wages of $23,400. For the last quarter of the year, the taxable wages paid amounted to...
Solve the following LP using the simplex method. 4x1 + 2x2 maximize subject to -x1 + x2 < 2 4x1 x24 x1, x2 0 Use the Danzig rule (pick a variable with the most negative coefficient in z-row) to...
The number of molecules crossing a unit area per unit time in one direction is given by where n is the number of molecules per unit volume and v is the average molecular velocity. As the average...
Bad Breath, Inc., sells its output at $ 1 per unit into competitive markets. Bad Breaths factory is the only employer of labor in Gilroy, California (garlic capital of the world). It faces a supply...
Economists 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...
The primary planning analytical procedure for equity is a comparison of current-year account balances with prior-year account balances, after considering the auditors expectations based on knowledge...
You and your group members are to assume the role as an HR Consulting Company. You have been hired by Maple Leaf Shoes Ltd. Maple Leaf Shoes has received a complaint from a current employee named...
Let 42840000 16 and 3c820000 16 represent two floating point numbers in IEEE single-precision FP format. a) Determine the decimal values of the two numbers. b) Add the two numbers and show the result...
Let (a) Find all the values of x such that f(x) = 3+ 5 8 | 0 |f(x)| < 4 and express your answer in interval notation as also on a real number line below. (b) Find all x values not in the domain of y...
Explain the four services that are over-performing (positive gaps) and explain what implications that may have. Healthcare Insurance Incentive Pay Program Vacation & Holiday Pay Performance Appraisal...
Describe the new People Data Central (PDC) portal adopted by Anthem. What does it do, and how does it improve data analytics capabilities at Anthem? How will the new PDC portal help the HR department...
Based on Exhibit 1, for the BI bond, one-sided: A. Up-duration will be greater than one-sided down-duration. B. Down-duration will be greater than one-sided up-duration. C. Up-duration and one-sided...
Separate variables and use partial fractions to solve the initial value problems in Problems 18. Use either the exact solution or a computer-generated slope field to sketch the graphs of several...
The following data were taken from the statement of financial position accounts of Murless Corporation on December 31, 2015. Instructions Prepare the required journal entries for the following...
Based on information in the Application The Demand Elasticities for Google Play and Apple Apps, the demand function for mobile applications at the Apple App Store is Q A = 1.4p -2 and the demand...
Solved Problem 2.5 claims that a new war in the Persian Gulf could shift the world oil supply curve to the left by 24 million barrels a day or more, causing the world price of oil to soar regardless...
The United Kingdom has a drinking problem. British per-capita consumption of alcohol rose 19% between 1980 and 2007, compared with a 13% decline in other developed countries. Worried about excessive...
Let U = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10}, A = {1, 3, 5, 7, 9}, B = {2, 4, 6, 8, 10}, and C = {1, 2, 4, 5, 8, 9}. List the elements of each set. (a) CC c (b) ( A C ) c (c) A ( B C )
What role does stakeholder engagement play in co-creating and refining organizational visions that resonate with diverse interests, values, and aspirations, thereby fostering collective ownership and...
List a TV show that you enjoy. Choose a group of 3-5 characters that have something in common. Call this set A. List the characters in roster notation. explain their commonality. Choose a second...

Suppose that firms in an industry use two inputs, labor and capital. If the price of labor

Question:

Step by Step Answer:

Uncertain See Figure that shows this statement to be true in t...View the full answer

Microeconomics Theory and Applications

Students also viewed these Economics questions