Multiple Choice
According to the output effect of a factor price change, if supply of labor decreases, then once the firm fully adjusts to the labor supply change, it
A) increases output and thus demand for all inputs increases.
B) decreases output and thus demand for all inputs decreases.
C) decreases demand for labor alone and there is no change in its output level.
D) decreases output and decreases demand for labor.
Correct Answer:
Verified
Correct Answer:
Verified
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