17.Now that the economy is growing rapidly Lincoln Electric will see demand ____________ for its products. This would cause Lincolnto ____________ production and overall compensation for Lincoln workers would ________.

1. Fall; increase; increase
2. Increase; increase; increase
3. Fall; decrease; decrease
4. Increase; decrease; increase
5. None of the above due to Lincoln's 'piece work' model of compensation.

18.Supposethe city of Cleveland imposes a living wage on all businesses there. Lincoln Electric will pay workers_____________________ rather than______________________.

1. Their average product of labor x the price ofwelding machine; the marginal product of labor x the price of welding machines.
2. Their marginal product of labor x theprice ofwelding machines; a wage that is based on supply and demand conditions.
3. A higher wage then they earn currently with the expectation of greater productivity; the exploitative wages their over-worked employees now get.
4. A wage that is above market equilibrium and higher than the marginal revenue product of labor for Lincoln workers; based on the marginal product of labor of each machine produced.