The firm’s demand curve is horizontal no matter what its output is because it ______.
a. can influence the market price determined mostly by the low market output
b. must accept the market price determined by the intersection of the market supply and demand curve
c. can influence the market price determined by the intersection of the market supply and demand curve
d. must accept the market price determined mostly by the high market output
b. must accept the market price determined by the intersection of the market supply and demand curve
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The labor force participation rate
A) increases as the real wage increases. B) decreases as the real wage increases. C) has nothing to do with the real wage rate. D) increases as the opportunity cost of working increases. E) is one of the major reasons that firms pay efficiency wages.
Refer to the above figure. Which panel shows the effect of an increase in the price of a good on the demand curve of that good?
A) Panel A B) Panel B C) both panels D) neither panel
A successful cartel may end up charging the ____ price and obtaining ____ profits.
A. monopolistic competition; zero economic B. oligopoly; monopoly C. monopoly; zero economic D. monopoly; monopoly
Mutually beneficial trade is impossible when different persons have different preferences about goods and services
a. True b. False Indicate whether the statement is true or false