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:

Worst-Case Scenarios

The most adverse, yet possible, outcomes that can occur under certain conditions.

Competitor Behavior

Actions and strategies employed by businesses in the same industry that influence market dynamics and competitive landscapes.

Accrual Accounting

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transaction takes place.

Sustainable Annualized

Reflects the ability to maintain performance or activity levels over a year considering current resources and capacities.