Which of the Following Could Explain an Increase in Labor

question 64

Multiple Choice

Which of the following could explain an increase in labor supply to a particular labor market?

• A)a reduced preference for this type of work
• B)a decrease in the size of the population
• C)an increase in the number of firms in the market
• D)a rightward shift of the marginal revenue product curve for labor at a typical firm
• E)a reduction in wage rates for similar types of work

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Definitions:

Net Income

This is the total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Variable Expenses

Costs that change in proportion to the level of activity or production volume.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its revenues, highlighting the impact of fixed costs on profitability.