The MRP curve for labor:
A. intersects the firm's labor demand curve from above.
B. is the firm's labor demand curve.
C. lies below the firm's labor demand curve.
D. lies above the firm's labor demand curve.
Answer: B
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Two social institutions that are essential for trade to be organized are ________
A) property rights and laws B) markets and banks C) businesses and banks D) markets and property rights
If on a given product indifference curve a firm is using an insufficient (nonoptimal) amount of one of its inputs
a. output will be below optimal. b. the MRP of the input will be below its price. c. costs will not be minimal. d. relative input prices need to change.
When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A. producer surplus. B. monopoly profits. C. consumer surplus. D. opportunity cost.
Which of the following arguments could be made as evidence that the market for cage-free eggs is perfectly competitive?
A) The U.S. Department of Agriculture has established standards for the labeling of cage-free eggs. B) Sales of cage-free eggs have increased at a rate of 20 percent per year. C) As more farmers began selling cage-free eggs, the increase in supply has driven down prices to the point where they just cover the cost of production. D) The profits earned by farmers who sell cage-free eggs have continued to grow, despite the increasing number of farmers entering this market.