Which of the Following Would Be a Consequence of a Fall

question 95

Multiple Choice

Which of the following would be a consequence of a fall in the price of the final product in a competitive industry?

• A)Each firm's labor demand curve will shift downward.
• B)The marginal value product of labor is higher for each firm.
• C)The marginal cost curve for each firm will shift outward away from the origin.
• D)The employment of labor in the industry will increase.

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Definitions:

Balance Sheet

A summary document detailing a firm's assets, liabilities, and equity held by shareholders at a certain moment.

Cumulative Effect

The total impact of one or more changes in accounting policies or corrections of errors made in previous years, reflected in the current year's financial statements.

Just-In-Time Inventory

A strategy that companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Income Taxes

Taxes imposed on individuals or entities' net income by the government to fund public expenses.