Answer:
Neither the costs are identical.
Explanation:
In the given scenario both of the airlines offer similar services to customers and the only difference is the way their aircraft was obtained. While the first company bought its own for $500,000 the second one is renting theirs for $30,000.
Their costs are however considered to be the same because if the first company goes out of business it's estimate of their plane is $30,000 per year. So even when they owned the plane cost of running it was the same as the second company.
Answer:
The correct answer is D
Explanation:
Minimum wage is the remuneration which is the lowest that the employers could legally pay to their workers. In short, the price or remuneration which is below that the workers could sell their labor.
Unions and laws support the minimum wages as the higher amount of the minimum wage result in decrease or fall in the job opportunities of the applicants who are low skilled . And few workers wants to hire them so that they will not be able to demand the better working conditions.
So, it is different from the efficiency wages in the minimum wages because it prevent the firms or the companies from lowering the wages in the presence of the surplus of the workers.
Answer:
- <u><em>d. a reduction in output and employment in domestic industries that utilize steel as a resource</em></u>
Explanation:
The first impact of a <em>quota that limits the importation of steel into the United States </em>is that the domestic market will experience a decrease on the number of suppliers.
As a consequence, the domestic manufacturers will have less competition and they will be able to increase the prices of the steel in the domestic market, instead of struggling to decrease the costs, or improve the quality, or increase the productivity, or enhance the service.
Thus, the domestic indutries that utilize the steel will face an increase on the prices of their main raw material, becoming less competitive. Then, <em>most likely</em>, their price should increase and their sales and production should decrease; thus, <em>they will face a reduction in output and employment.</em>
