Figure 18-4 -Refer to Figure 18-4.Which Factor Could Possibly Explain the Shift

question 150

Multiple Choice

Figure 18-4

-Refer to Figure 18-4.Which factor could possibly explain the shift of the labour demand curve from D₁ to D₂

• A)a change in workers' attitudes toward the work-leisure tradeoff
• B)decreases in wages in other labour markets
• C)an increase in the price of firms' output
• D)new technology that replaces workers

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Definitions:

Fixed Costs

Expenses such as rent, salaries, and insurance that remain constant regardless of the amount of production or sales.

Variable Cost

A cost that varies with the level of output or production volume.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the reduction in value owing to wear and tear, age, or obsolescence.