If a firm decreases its capital stock, real wages will likely ________ and the equilibrium quantity of labor will likely ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Correct Answer:
Verified
Q22: As the result of an increase in
Q23: If the supply of labor _, real
Q24: A wage rate that is adjusted for
Q25: In equilibrium, the quantity of labor demanded
Q26: As more efficient capital equipment becomes available,
Q28: As the result of a decrease in
Q29: The marginal benefit of a worker to
Q30: Firms consider the _ wage when considering
Q31: If a firm increases its capital stock,
Q32: An increase in a firm's capital stock
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