Consider the Usual Case Where a Higher Wage Rate Increases

question 11

Multiple Choice

Consider the usual case where a higher wage rate increases firms' marginal costs.In this case,the industry's demand curve for labor

• A) is more inelastic than the individual firms' demand curves would indicate.
• B) coincides with the horizontal sum of individual firms' demand curves.
• C) contains only substitution effects but no scale effects.
• D) is horizontal at the going market wage.

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The total income generated by a company from its normal business activities, typically from the sale of goods and services to customers.

Liabilities

Financial obligations or debts that a company owes to others, which must be paid or settled in the future.

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The value of an owner's interest in a company at the end of an accounting period, calculated as total assets minus total liabilities.

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.