If the Supply of Labour Decreases,which of the Following Events

question 11

Multiple Choice

If the supply of labour decreases,which of the following events will occur?

• A)The wage rate will decrease and firms will increase the number of workers to the point at which the value of marginal product equals the new wage rate.
• B)The wage rate will decrease and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• C)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product equals the new wage rate.
• D)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is greater than the new wage rate.
• E)The wage rate will increase and firms will decrease the number of workers to the point at which the value of marginal product is less than the new wage rate.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity or volume of a business operation, such as materials and labor.

Mass Customization

A production and marketing strategy that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Supply-Chain Performance

A measure of how well a supply chain fulfills customer demands and manages resources efficiently.

Sales Forecasting

The process of estimating future sales revenue over a specific period, based on past sales data, trends, and market analysis.