The monopsonist's marginal labor cost curve always lies below the labor supply curve
Indicate whether the statement is true or false
F
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If fiscal stimulus creates a large budget ________, then in the long run economic growth ________
A) deficit; decreases B) surplus; increases C) deficit; increases D) surplus; decreases E) None of the above answers is correct. The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.
Relative to free trade, when a tariff is imposed in a market for an imported good,
A) the consumer surplus in that market increases. B) the producer surplus in that market decreases. C) the total surplus in that market decreases. D) tariff revenue decreases. E) deadweight loss decreases.
The marginal product of labor curve can be shifted to the right by
a. improved technology b. additional physical capital c. improved human capital d. all of the above e. none of the above
An incumbent monopolist producing more output than necessary might be able to keep potential rivals from entering
A) by flooding the market with products below its marginal cost in the short run. B) if learning by doing reduces marginal cost. C) if the long-run marginal cost can be lowered below the potential entrant's short-run marginal cost. D) All of the above.