The Widget Industry Is Perfectly Competitive and Produces 1000 Widgets

question 23

Multiple Choice

The widget industry is perfectly competitive and produces 1000 widgets.Currently,it takes one unit of skilled labor and two units of unskilled labor to produce one widget.Technological change then increases the productivity of skilled labor only.Afterward,the total employment of skilled workers goes up.Which of the following is consistent with this result? ________ units of skilled workers and two units of unskilled labor are needed to produce one widget and total output is ________ widgets.

• A) 0.75; 1100
• B) 1.25; 1600
• C) 1.25; 1100
• D) 0.75; 1600

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Definitions:

Cash Withdrawals

The act of taking money out of an account, decreasing the account balance.

Assets

Resources owned or controlled by a company or individual with the expectation that they will provide future benefit.

Accounting Equation

A fundamental financial principle representing the relationship between a company's assets, liabilities, and shareholder's equity: Assets = Liabilities + Equity.

Increase Assets

An augmentation in the total value or amount of economic resources owned or controlled by an entity.