1] The scale effect of an increase in the wage a) only impacts firm decisions in the short run b) will cause the firm to reduce use of both capital and labor c) affects the firms demand for labor, but not its demand for capital d) refers to the firms increase in demand for now relatively cheap capital

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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1] The scale effect of an increase in the
wage
a) only impacts firm decisions in the short
run
b) will cause the firm to reduce use of
both capital and labor
c) affects the firms demand for labor, but
not its demand for capital
d) refers to the firms increase in demand
for now relatively cheap capital
Transcribed Image Text:1] The scale effect of an increase in the wage a) only impacts firm decisions in the short run b) will cause the firm to reduce use of both capital and labor c) affects the firms demand for labor, but not its demand for capital d) refers to the firms increase in demand for now relatively cheap capital
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