Use the Following to Answer Question(s): Demand and Supply of Bricklayers

question 147

Multiple Choice

Use the following to answer question(s) : Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market

-(Exhibit: Demand and Supply of Bricklayers in a Perfectly Competitive Labor Market) If the equilibrium wage in the market for bricklayers is $100 a day, but a minimum wage for bricklayers of $130 a day is set by the government:

• A) 6 workers will now be hired by the firm.
• B) 3 workers who otherwise would have been employed are now unemployed.
• C) all bricklayers are better off.
• D) the firm will shut down.

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Definitions:

Facility Expenses

Costs associated with the physical locations a business operates, including utilities, maintenance, and rent or mortgage payments.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate financial planning.

Activity Variance

Activity variance is the difference between the expected level of activity used to estimate fixed costs and the actual level of activity experienced.

Administrative Expenses

Overhead or general expenses related to the administration of a business, including office salaries, utilities, and legal costs.