The equilibrium wage in a local labor market is $10 per hour. If a minimum wage of $15 per hour is imposed, which of the following will occur?
A) There will be a decrease in the quantity of labor supplied by households.
B) There will be an increase in unemployment.
C) There will be an increase in the quantity of labor demanded by firms.
D) All of the above will occur.
B
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In perfect competition, the price of the product is determined where the market
A) elasticity of supply equals the market elasticity of demand. B) supply curve and market demand curve intersect. C) average variable cost equals the market average total cost. D) fixed cost is zero.
A monopolist changes price from $1 to $2 and sells 10 fewer units. The marginal revenue is
A) $10 B) -$10 C) $0 D) impossible to determine with the information provided.
Lara will agree to a second date with Tom only if, on their first date, Tom is well mannered and well dressed. Lara is using a
a. Screening mechanism b. Signaling mechanism c. All of the above d. None of the above
Although there are barriers to entry in a monopolized industry, there are usually many close substitutes for the monopolist's product
a. True b. False