Which of the Following Would Result in a Short-Run Increase

question 11

Multiple Choice

Which of the following would result in a short-run increase in the wage rate in a competitive labor market?

• A)An increase in immigration.
• B)An increase in the output price.
• C)A decrease in productivity.
• D)An increase in native labor supply.
• E)A decrease in labor demand.

Understand the concept and strategic implications of "fast-second strategy" in competitive markets.

Grasp the inverted-U theory related to industry concentration and R&D expenditures.

Recognize the importance of first-mover advantages, including brand-name recognition and barriers to imitation.

Differentiate between the types of legal protection for innovations and their roles in encouraging R&D.

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Definitions:

Productive Capacity

Productive capacity is the maximum output a system, facility, or project can produce under normal conditions within a given period.

Useful Life

The estimated period a fixed asset is expected to be usable for its intended purpose, important for depreciation calculations.

Residual Value

The estimated remaining value of an asset at the end of its useful life, often considered for depreciation calculations and lease contracts.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in value.