Each Firm's Capital Stock Is Fixed in the Short Run

question 89

Multiple Choice

Each firm's capital stock is fixed in the short run.Therefore, if the price of capital increases, then in the short run the market demand curve for labor in a perfectly competitive market will

• A)shift inward.
• B)be unaffected.
• C)shift outward.
• D)change slope.

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Definitions:

Primates

An order of mammals that includes humans, apes, monkeys, and prosimians, characterized by a large brain, forward-facing eyes, and opposable thumbs.

Upright

Upright refers to an orientation or position in which something is situated vertically and straight relative to the ground or normal direction of gravity; often used to describe the posture of humans and objects.

Australopithecus Species

A group of extinct hominids closely related to humans, known for walking upright and living millions of years ago.

Sequence

An ordered list of elements or events that follow a specific pattern or arrangement.