The supply-and-demand model may not be appropriate in markets with large transaction costs
What will be an ideal response?
True. If the costs of finding a trading partner are high, no trades may occur, or trades may occur at a variety of prices.
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The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number ofEmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The net benefit of hiring fundraisers is largest when ________ employees are hired.
A. 2 B. 4 C. 3 D. 1
A firm that wishes to maximize profits will continue to hire labor until the
A) real wage = MPL. B) nominal wage = MPL. C) nominal wage = the real wage. D) nominal wage = the price level.
In the acreage allotment program, a farmer's acreage allotment is sometimes based on a farmer's
A) history of production. B) income. C) location. D) b and c E) none of the above
Which of the following was not a criticism of the unconventional monetary policy used by the Fed in 2009 and 2010?
A. Tendency toward higher unemployment B. Tendency toward higher inflation C. Usurping authority which should be allocated to Congress D. Determining which banks would be allowed to fail