Exam 3: The Demand for Labor

If employers are paid a subsidy of $0.75 per hour for hiring teenage workers, then

For two substitutes in production, if the substitution effect dominates

If two inputs are complements in production

When the price of capital increases, a firm will

A competitive firm uses two inputs: capital and labor. At its current level of hiring of both inputs, capital's marginal product is 12 while labor's marginal product is 18. Capital's cost (C) is $8 per unit while labor's cost (W) is $9. In the long run, to produce the same output at a lower cost, the firm should

Table 3.1 -Referring to Table 3.1, which is of the following answers is INCORRECT? If pots sell for $20 each then

If two inputs are substitutes in production and an increase in the price of one input shifts the demand curve for the other input to the left then

If the hourly wage is $50 and the price of output is $25 then in the short run

When a firm moves to a higher isoquant,

Workers will bear less of a payroll tax if

Table 3.1 -Referring to Table 3.1, diminishing marginal returns begins with the ________ employee.

In the short run

If an increase in the cost of labor causes the firm to use less capital, then

If labor costs twice as much as capital (per unit), then, in the long run,

When deciding the salary of a sports star,