Refer to the diagram. Assuming no union or relevant minimum wage, the firm represented will hire:
A. Q 2 workers and pay a W 4 wage rate.
B. Q 2 workers and pay a W 1 wage rate.
C. Q 3 workers and pay a W 2 wage rate.
D. Q 4 workers and pay a W 1 wage rate.
B. Q 2 workers and pay a W 1 wage rate.
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The impact of a decrease in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve B) an upward movement along the labor supply curve C) a leftward shift of the labor supply curve D) a downward movement along the labor supply curve
The profits of a proprietorship are
A) taxed at the same rate as the owner's other personal income. B) subject to a corporate tax. C) taxed as capital gains indexed for inflation. D) exempt from taxation.
The cross-price elasticity of demand for complements is
A. zero. B. negative. C. positive. D. cannot be specified without more information
Many people believe that monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing monopoly is determined by:
A. Marginal revenue = Demand. B. Average total cost = Demand. C. Marginal cost = Demand. D. Marginal cost = Marginal revenue.