Each Firm's Capital Stock Is Fixed in the Short Run

question 89

Multiple Choice

Each firm's capital stock is fixed in the short run.Therefore, if the price of capital increases, then in the short run the market demand curve for labor in a perfectly competitive market will

• A)shift inward.
• B)be unaffected.
• C)shift outward.
• D)change slope.

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Definitions:

Somatic Nervous System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles, and also mediates sensory information.

Peripheral Nervous

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the CNS to limbs and organs.

Central Nervous

Pertains to the part of the nervous system consisting of the brain and spinal cord, which integrates information and coordinates all bodily functions.

Knee-Jerk Reflex

A rapid, automatic response to a stimulus, such as a physical tap, that causes the knee to jerk involuntarily.