that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the demand for the product these firms sell increases, so that the market price of this product increases, we would expect which of the following regarding the equilibrium wage, W, and the equilibrium quantity of labor, L, employed? Group of answer choices a) a decrease in W and no change in L b) a decrease in W and a decrease L c) an increase in W and a decrease L d) a decrease in W and an increase L e) an increase in, W, and an increase in L
that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the demand for the product these firms sell increases, so that the market price of this product increases, we would expect which of the following regarding the equilibrium wage, W, and the equilibrium quantity of labor, L, employed? Group of answer choices a) a decrease in W and no change in L b) a decrease in W and a decrease L c) an increase in W and a decrease L d) a decrease in W and an increase L e) an increase in, W, and an increase in L
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 6SQP
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Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the
Group of answer choices
a) a decrease in W and no change in L
b) a decrease in W and a decrease L
c) an increase in W and a decrease L
d) a decrease in W and an increase L
e) an increase in, W, and an increase in L
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