Given an 8 Percent Increase in Wages, Firm a Cuts

question 22

Multiple Choice

Given an 8 percent increase in wages, firm A cuts back on labor more than firm B. It follows that, ceteris paribus,

• A)there are likely fewer substitutes for labor in firm B than firm A.
• B)there are likely fewer substitutes for labor in firm A than firm B.
• C)sunk costs are greater for firm A than firm B.
• D)the demand for the product that firm A produces is likely less elastic than the product that firm B produces.
• E)a and d

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Definitions:

Photosystem I

A component of the photosynthetic system found in the chloroplasts of plants and algae that captures light energy and converts it into chemical energy during the process of photosynthesis.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, crucial for photosynthesis as it absorbs light energy to produce sugar.

Absorption Peak

The wavelength or region of the electromagnetic spectrum where a substance absorbs the most light, often used in spectroscopy for identification.

Thylakoid Membranes

Membrane-bound compartments inside chloroplasts and cyanobacteria, site of the light-dependent reactions of photosynthesis.