The reservation wage is
A) the wage that an employer must pay workers to reduce turnover to a reasonable level.
B) the wage that ensures a laid-off individual will wait for re-hire, rather than find another job.
C) the lowest wage firms are allowed by law to pay workers.
D) the wage offer that will end a labor-strike.
E) none of the above
E
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If a firm can double inputs and, thereby, more than double output over the range of output the market demands, it is a
a. natural monopoly b. local monopoly c. price discrimination monopoly d. monopsony e. candidate for antitrust prosecution
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a. True b. False Indicate whether the statement is true or false
If a competitive market operates perfectly, it relies on:
A. the number of people buying goods. B. the laws of supply and demand. C. how many products can be produced for sale. D. how much people are willing to pay for the products.