What Is the Effect of Anything That Makes the Efficiency

question 16

Multiple Choice

What is the effect of anything that makes the efficiency wage rise relative to the market-clearing wage?

• A) It increases both the quantity demanded and the quantity supplied of labour.
• B) It decreases both the quantity demanded and the quantity supplied of labour.
• C) It increases the quantity demanded and decreases the quantity supplied of labour.
• D) It decreases the quantity demanded and increases the quantity supplied of labour.

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Definitions:

Per-Unit Costs

The average cost associated with producing or acquiring a single unit of a product or service.

Centralizing Production

The process of consolidating production activities and operations into a single or fewer locations to improve efficiency and control.

Meganational Strategy

A business approach that emphasizes global-scale operations and market presence.

Differentiation Strategy

A marketing strategy in which a company develops a unique product or service to stand out from competitors.