Refer to the below graph. If the MRC being horizontal means that:
A. The firm could hire addition labor without changing the wage rate
B. The firm is selling its product in a purely competitive market
C. The firm has a constant total cost of production
D. The firm has perfectly elastic labor demand
A. The firm could hire addition labor without changing the wage rate
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Well-functioning financial markets
A) cause inflation. B) eliminate the need for indirect finance. C) cause financial crises. D) allow the economy to operate more efficiently.
The theory of purchasing power parity suggests that, in the long-run, exchange rates are determined by ________
A) relative interest rate levels B) relative price levels C) the GDP values for the two countries D) the most significant monetary authorities, including the Federal Reserve, European Central Bank, Bank of England and the Bank of Japan
When the domestic currency depreciates, foreign demand for domestic goods increases
a. True b. False Indicate whether the statement is true or false
Which of the following is not an example of efficiency wages?
a. More productive workers are paid more to reflect their higher output. b. Higher wages induce higher output from workers. c. Better quality applicants apply for jobs that pay above-equilibrium wages. d. Workers are less likely to leave jobs that pay above-equilibrium wages.