Factor Markets

The price of raw materials saved by hiring more labor.

The total sum of wages paid to the additional labor.

The income foregone from not investing in capital or other resources.

The decrease in unemployment rates in the firm's industry.

There's no shift; only wage levels fluctuate with new immigrants entering the job market.

The factor supply curve shifts leftward due to potential language barriers decreasing efficiency.

The factor supply curve becomes perfectly elastic since there’s an excess of labor available now.

The factor supply curve shifts rightward as more people are available for work.

Diseconomies of scale

Diminishing returns

Marginal product

Economies of scale

It will decrease as workers demand higher wages due to increased skills.

It will decrease due to higher costs of hiring well-trained workers.

It will increase because workers are better trained and more available.

It will remain unchanged as subsidies do not affect worker availability.

Both equilibrium price and equilibrium quantity decrease.

Equilibrium price increases and equilibrium quantity decreases.

Equilibrium price decreases and equilibrium quantity increases.

Both equilibrium price and equilibrium quantity increase.

Total output divided by the number of workers.

Change in total cost from hiring one more worker

Change in total revenue when one more worker is hired

The additional output resulting from one more unit of labor

Prices will increase and product variety will remain unchanged due to greater differentiation.

Prices will remain unchanged and product variety will decrease due to increased economies of scale.

There will be no change in either prices or product variety as firms' profits are maximized at current levels.

Prices will decrease and product variety may increase due to reduced barriers to entry.

Keep its workforce size unchanged while increasing dividend payments only

Hire more workers due to increased after-tax profits allowing expansion

Outsource jobs overseas due to decreased financial constraints

Reduce its workforce as it tries to save money on operational costs

Labor demand increases

Labor demand remains unchanged

Labor demand decreases

Labor supply increases

The quantity of labor demanded might increase significantly.

The quantity of labor demanded might decrease slightly.

The quantity of labor demanded might remain constant.

The quantity of labor demanded might oscillate unpredictably.