If the opportunity cost of working outside the home decreases then it is likely that assuming all else equal. A. there will be an upward movement along the labor supply curve B. there will be a downward movement along the labor supply curve C. there will be a rightward shift in the labor supply curve D. there will be a leftward shift in the labor supply curve The correct answer is C, but I am still confused with this question, can you explain why C is correct? Thank you.

If the opportunity cost of working outside the home decreases then it is likely that assuming all else equal. A. there will be an upward movement along the labor supply curve B. there will be a downward movement along the labor supply curve C. there will be a rightward shift in the labor supply curve D. there will be a leftward shift in the labor supply curve The correct answer is C, but I am still confused with this question, can you explain why C is correct? Thank you.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 10RQ: Give the three reasons that explain why the division of labor increases an economys level of...

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Adam operates a small shop specializing in party favors. He owns the build- ing andsupplies all of his own labor and money capital. Adam incurs no explict rental or wagecost. Before starting his own bussines Adam earned $1,000 per month by renting outthe store and earned $2,500 per month as a store manger for a lrge departmentstore chain. Because Adam use his own money capital, he also sacrificed $1,000 permonth interest earned on U.S government treasury bonds. Adam’s monthly revenuesfrom operating his shop are $10,000 and his total monthly expense for labor andsupplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
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