Solved

Which of the Following Is a Long-Run Impact of an Increase

Question 50

Multiple Choice

Which of the following is a long-run impact of an increase in the wage?


A) The quantity demanded of labor increases because there are no diminishing returns.
B) The quantity demanded of labor increases because the marginal revenue product curve shifts upward due to a higher product price.
C) The quantity demanded of labor decreases because firms face a higher degree of diminishing returns.
D) The quantity demanded of labor decreases because firms will have an incentive to use more of other inputs instead of labor.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents