A Major Computer Software Company Maintains a Technical Support Center

question 112

Multiple Choice

A major computer software company maintains a technical support center in a rural area and is the only employer in this region. Suppose the local labor supply curve shifts leftward due to net migration of workers from the area. What happens to the equilibrium outcome in this labor market?

• A) Labor demand shifts rightward; equilibrium wage and employment levels decline.
• B) Labor demand shifts rightward; equilibrium wage and employment levels increase.
• C) Labor demand curve remains the same; equilibrium wage and employment levels increase.
• D) Labor demand curve remains the same, equilibrium wage increases, and employment declines.

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Definitions:

Meganational Companies

Companies that operate on a global scale, extending their products, operations, and marketing strategies across multiple countries.

Network Structure

A structure that organizes a company by groups that form to work on a project, and then dissolve once the project is complete.

Matrix Structure

A structure that organizes a company along multiple dimensions that may include geography, function, and division.

Transnational Organizations

Organizations that operate across multiple countries, transcending national borders, to achieve their objectives.