Under perfect competition in the resource market, the marginal factor cost curve:
a. is positively sloped.
b. is vertical.
c. is negatively sloped.
d. is horizontal.
e. does not exist.
d
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In order to calculate the real interest rate, simply:
A. add the rate of inflation to the nominal interest rate. B. subtract the rate of inflation from the nominal interest rate. C. subtract the nominal interest rate from the rate of inflation. D. divide the nominal interest earned by the rate of inflation.
If the North American newsprint paper market is a monopoly, then: a. abnormally high profits will attract the entry of new firms
b. the entry of new firms will eventually cause price to decline. c. the quantity produced in the market is larger than the socially optimal level of output. d. entry will remain blocked even if the monopolist earns high profits in the short run.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
What will be an ideal response?
Define and illustrate “noncompeting groups” and “compensating differences.”
What will be an ideal response?