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In: Economics

18. Widgets are provided by a constant-cost industry. Each firm employs one executive and a variable...

18. Widgets are provided by a constant-cost industry. Each firm employs one executive and a variable number of workers. Consider the following two scenarios: Scenario

A. Executive salaries rise, causing the price of a widget to rise by $5 in the long run. Scenario

B. Workers’ salaries rise, causing the price of a widget to rise by $5 in the long run. Of the two scenarios, which leads to a larger quantity of widgets per firm in the long run?

. please write the answer in clear hand writing or type it. thank you

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Rahul Sunny answered 1 year ago
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