Factor Markets

Wages

Interest

Dividends

Rent

The firm will necessarily increase wages to attract workers.

Firms will continue hiring regardless of opportunity costs.

Firms may decide not to hire more workers due to increased costs.

Firms will automatically lay off existing workers to reduce expenses.

It can reduce overall employment as firms may rely more on technology than subsidized skilled workers.

It can lead to an increase in human capital and potentially shift the supply curve for skilled labor to the right.

It can result in higher wages without changing employment levels or productivity rates.

It can create a surplus of unskilled labor as workers leave those positions for training opportunities.

When average factor cost equals average total cost.

When average factor cost equals marginal revenue product.

When marginal factor cost equals average product revenue.

When marginal factor cost equals marginal revenue product.

Wage and employment level will both increase.

Employment level will decrease while wage remains unchanged.

Wage will decrease while employment level remains unchanged.

Both wage and employment level will decrease.

At the maximum possible level of production.

When the marginal cost equals marginal revenue.

When fixed costs begin to rise.

When average total costs are minimized.

Increased number of entrants causes a hike in initial pay, reflecting a greater availability of a talent pool.

No impact whatsoever, as the demographics of the job seekers are irrelevant to these types of dynamics.

Decreased competition among applicants places downward pressure on starting salaries.

Marginally affected, with slight adjustments made to compensate for the overabundance of candidates.

It ensures that businesses always choose land over labor for production efficiency reasons.

It dictates that businesses must always employ equal amounts of land and labor for balanced growth.

It allows them to weigh the benefits of producing more goods against the costs of employing fewer workers or vice versa.

It helps them determine which employees are underperforming and should be let go.

The firm should not hire additional workers

The firm should keep the number of workers constant

The firm should shut down

The firm should reduce the number of workers

The number of workers that are willing and able to sell their labor increases as the wage falls

The number of workers that are willing and able to sell their labor decreases as the wage falls

The number of workers that are willing and able to sell their labor increases as the wage increases

The number of workers that are willing and able to sell their labor decreases as the wage increases