The Widget Industry Is Competitive

question 10

Multiple Choice

The widget industry is competitive. Widgets (W) are produced with skilled labor (S) such that each skilled labor produces c widgets such that W = aC. If technological progress makes skilled labor more productive, then more skilled workers will be employed

• A) only when the demand for widgets is price inelastic.
• B) only when the demand for widgets in price elastic.
• C) no matter what the price elasticity of demand is.
• D) fewer skilled workers will be employed no matter what else happens.

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Definitions:

Management Training

A process or program to improve the skills and knowledge of managers within an organization, focusing on various aspects of management and leadership.

Consignment Locations

Places where goods are stored or displayed for sale by a third party, but ownership (and often risk) remains with the supplier until sold.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the cost is evenly distributed over its useful life.

Prior Period Adjustment

A correction of errors in financial statements of previous periods that were not discovered until the current period.