The Market Supply Curve for Labor Curve Is Upward-Sloping Because

question 53

Multiple Choice

The market supply curve for labor curve is upward-sloping because

• A)As the wage rises,most workers want to work fewer hours.
• B)As the wage falls,most workers want to work more hours.
• C)As the wage rises,most workers are willing to work more hours.
• D)For most workers,as the wage rises,the preference for leisure time increases.

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Definitions:

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold by a business.

Degree of Operating Leverage

A measure that quantifies how much sales revenue can affect operating income due to the presence of fixed costs in a company's cost structure.

Pretax Profit

The profit earned by a company before any tax is deducted, showing the company's earnings directly from its operations.

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.