Refer to the Information Provided in Figure 10

question 95

Multiple Choice

Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. Figure 10.3
-Refer to Figure 10.3. The market wage is initially W₁ and the firm is initially at Point B. Labor supply increases from S₁ to S₀. The firmʹs MRP_L curve will shift from MRP_L at K₂ to MRP_L at K₁ because

• A) the factor substitution effect will cause the firm to substitute capital for the lower-priced labor.
• B) the supply of labor increased and therefore the productivity of labor increased.
• C) the output effect led to ann increase in the demand for capital, which in turn increased the productivity of labor.
• D) the firm is no longer maximizing profits.

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Definitions:

Qualified Women

Women who possess the necessary skills, education, and experience required for specific jobs or positions.

Minorities

Groups of individuals differentiated from the majority in a given society or community based on characteristics such as race, religion, language, or political beliefs.

Glass Ceiling

An invisible barrier that prevents minorities and women from rising to the highest ranks of power or success within a corporation or organization, despite qualifications or achievements.

Workforce

The group of individuals engaged in work or available for work, either in a specific industry or in the labor market as a whole.