Assume That Labor Is a Variable Input

question 187

Multiple Choice

Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in a(n)

• A)increase in marginal cost for firms in the industry and an increase in the industry supply curve.
• B)decrease in marginal cost for firms in the industry and a decrease in the industry supply curve.
• C)decrease in marginal cost for firms in the industry and an increase in the industry supply curve.
• D)increase in marginal cost for firms in the industry and a decrease in the industry supply curve.

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Definitions:

Matrix Organization

A corporate structure that combines two or more different types of organizational structures, typically functional and product-based divisions, to leverage the benefits of both.

Market-Based Structure

An organizational structure where decisions and activities are guided by market signals rather than by internal considerations.

Product Groupings

The classification of individual products into larger categories based on characteristics, functions, or customer segmentation for marketing and logistical purposes.

Strategic Marketing Process

The approach that a business takes to develop and implement effective marketing strategies that align with its overall objectives and meet customer needs.