Suppose there are 100 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8. The equilibrium wage rate for a number of years has been $9. If the wage rate falls to $8, we know that

A. the quantity demanded for the market will increase to more than 3,000 workers.
B. the quantity demanded for the market will increase to less than 3,000 workers.
C. the quantity demanded for the market will increase to 3,000 workers.
D. the quantity demanded for the market will increase, but we can't tell which of these answers is correct.


Answer: C

Economics

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Answer the following statement true (T) or false (F)

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Let MC be the marginal private cost per megawatt hour (Mwh) of producing electricity using coal. Let MSC be the marginal social cost per Mwh and T be the tax per Mwh. To achieve efficiency, the tax should be set so that

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