The least costly combination of inputs is influenced by the relative prices of inputs.
Answer the following statement true (T) or false (F)
True
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Perfect competition is characterized by a(n)
a. large number of buyers and sellers, each one a price taker b. single seller and many buyers c. small number of sellers offering differentiated products d. intense rivalry among several competitors e. small number of buyers and sellers who negotiate the market price
Suppose that the labor market for high school chemistry teachers is initially in equilibrium. Chemistry teachers use laboratory chemicals as an important part of their jobs. New environmental regulations ban the use of many chemicals, which means that fewer laboratory chemicals are available for high school chemistry teachers to use in their jobs. In the market for high school chemistry teachers,
the equilibrium wage a. increases because the marginal productivity of high school chemistry teachers increases. b. decreases because the marginal productivity of high school chemistry teachers decreases. c. increases because the supply of high school chemistry teachers increases. d. decreases because the supply of high school chemistry teachers decreases.
If the world supply curve is SW0, and the country discovers a significant natural resource that can be exported, the world supply curve will shift:
A. up and the trade balance will become a surplus. B. up and the trade balance will become a deficit. C. down and the trade balance will become a surplus. D. down and the trade balance will become a deficit.
Refer to the below graph. If this labor market were operating under pure competition, the equilibrium wage rate would be:
A. W1 and Q1 workers would be hired
B. W2 and Q2 workers would be hired
C. W2 and Q1 workers would be hired
D. W3 and Q1 workers would be hired