Reference no: EM131972396

1. Suppose that several large companies simultaneously announce that they're going to invest heavily in public infrastructure, raising the price of steel and iron ore. What will happen to the quantity and price (wages) for iron miners?

A) The labor supply and labor demand curves will both change

B) Labor demand will shift right: iron miners' wages will rise and the quantity of miner will increase.

C) Labor demand will shift left: iron miners' wages will decline and the quantity of miners will also decline.

D) Labor supply will shift left: iron miners' wages will increase and the quantity of miners will decrease.

E) The labor supply curve will shift right: iron miners' wages will decrease and the quantity of miners will increase

2. Which of the following item is not an assumption in the break-even and contribution margin analysis?

A. The unit selling price may change periodically due to competition or the product being obselete.

B. Sale volume is the only variable that affects variable costs.

C. There is only one product or sales mix is assumed to be constant.

D. The variable cost per unit is constant.