The MFC curve increases for a monopsonist because:
a. hiring more workers raises total labor costs.
b. output price rises as a firm's market power increases.
c. hiring more workers does not affect wages.
d. the later workers hired are less productive.
e. as more workers are hired, all workers receive higher wages.
e
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The single best indicator of the degree of economic inequality in a country is the
a. top/bottom ratio b. Gini coefficient c. poverty rate d. Kuznets curve e. bell curve
The NPV of a project rises as the discount rate rises
Indicate whether the statement is true or false
Perfect competition and monopolistic competition are similar in this one respect:
a. firms make zero economic profit in the long run b. firms produce at the lowest point on their ATC curves c. there are few firms in each industry d. entry is difficult e. firms produce differentiated products