I need help with A, B, C and D. The Labor Market – End of Chapter ProblemIndicate whether each labor demand decision by Benjamin's Café illustrates the opportunity cost principle, the cost-benefitprinciple, or the interdependence principle.a. Benjamin's Café cuts back on baristas when the market wage rises. Consequently, Benjamin's sells less coffee.interdependence principleO opportunity cost principlecost-benefit principleb. The discovery of shale gas reserves prompts an influx of new workers into the area, leading to a surge in demand forBenjamin's coffee. In response, Benjamin's hires additional baristas.cost-benefit principleO opportunity cost principleO interdependence principle Benjamin's coffee. In response, Benjamin's hires additional baristas.cost-benefit principleO opportunity cost principleO interdependence principlec. Benjamin's Café weighs the benefits of hiring an additional barista-a certain volume of increased drink production andthus revenue-against the cost of hiring that worker.cost-benefit principleopportunity cost principleO interdependence principled. The examples in parts a through c illustrate how the opportunity cost principle, the cost-benefit principle, and theinterdependence principle can be used to explain why thelabor demand curve slopes downward.labor supply curve slopes upward.labor supply curve slopes downward.O labor demand curve slopes upward.

According to Wikipedia , the definition of these three principles are as follows : The opportunity…

The Labor Market – End of Chapter Problem Indicate whether each labor demand decision by Benjamin's Café illustrates the opportunity cost principle, the cost-benefit principle, or the interdependence principle. a. Benjamin's Café cuts back on baristas when the market wage rises. Consequently, Benjamin's sells less coffee. interdependence principle opportunity cost principle cost-benefit principle b. The discovery of shale gas reserves prompts an influx of new workers into the area, leading to a surge in demand for Benjamin's coffee. In response, Benjamin's hires additional baristas. cost-benefit principle opportunity cost principle interdependence principle

The Labor Market – End of Chapter Problem Indicate whether each labor demand decision by Benjamin's Café illustrates the opportunity cost principle, the cost-benefit principle, or the interdependence principle. a. Benjamin's Café cuts back on baristas when the market wage rises. Consequently, Benjamin's sells less coffee. interdependence principle opportunity cost principle cost-benefit principle b. The discovery of shale gas reserves prompts an influx of new workers into the area, leading to a surge in demand for Benjamin's coffee. In response, Benjamin's hires additional baristas. cost-benefit principle opportunity cost principle interdependence principle

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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Give two examples of events that could shift thedemand for labor, and explain why they do so
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