In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment
A) raises; increases
B) raises; decreases
C) lowers; increases
D) lowers; decreases
A
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The owner of a network will always want to be compatible with other networks in order to take advantage of network economies
Indicate whether the statement is true or false
Properties of long-run competitive equilibrium with free entry include:
A. an equilibrium price equal to the minimum MC. B. firms earning positive profits. C. active firms producing at their efficient scales of production. D. All of these are properties of long-run competitive equilibrium.
Which of the following can be categorized as derived demand?
a. A decline in the demand for building products following a drop in housing demand. b. An increase in demand for gasoline following a fall in the price of petroleum products. c. An increase in the demand for woolens in winter. d. A decline in the demand for labor on account of outrageous demands of trade unions.
Firms in long-run perfect competition produce at
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) no returns to scale.