For Any Competitive Labor Market,changes That Decrease the Number of Workers

question 136

Multiple Choice

For any competitive labor market,changes that decrease the number of workers will:

• A) decrease the labor supply and shift the supply curve left.
• B) increase the labor supply and shift the supply curve right.
• C) decrease the labor supply and shift the supply curve right.
• D) increase the labor supply and shift the supply curve left.

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Definitions:

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a good or service, reflecting how total cost changes with output variation.

Monopoly

is a market structure characterized by a single seller dominating the entire market by selling a unique product or service.

Predatory Pricing

A competitive strategy involving setting prices at very low levels with the intent to eliminate competition, potentially leading to monopoly pricing power once competitors are driven out.