Ariana is the CEO of a corporation that hires nonunion labor. According to the theory of efficiency wages, if she decides to pay her workers more than the competitive equilibrium wage, then
a. the profits of her firm might increase.
b. she will face a shortage of labor.
c. the turnover of her workers may increase.
d. None of the above is correct.
a
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Which of the following is the best example of a transactions cost?
A) the value of the time spent negotiating a contract B) the price of a new set of tires C) the cost associated with producing a golf club D) the price of labor and materials used to produce a house E) the price of food
The producer price index was earlier known as _____
a. the retail price index b. the commodity market index c. the Fischer index d. the wholesale price index e. the cost of living index
Considering production decisions for only the short run, a firm producing where MC = MR should stop producing if
a. its losses are less than TFC b. its losses equal TFC c. its losses are greater than TFC d. TR is less than TC e. TR exceeds TVC
Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
A. market demand. B. a negatively-sloped supply curve. C. an excess supply of homes. D. a positively-sloped supply curve.