For competitive firms, the curve that represents the value of marginal product of labor is the same as the demand for labor curve
a. True
b. False
Indicate whether the statement is true or false
True
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Nearly a quarter of China's 1.3 billion people are under the age of 15. How will this affect high school enrollment over the next fifteen years? The labor market over the next fifteen years?
What will be an ideal response?
It is difficult to engage in long-term financial planning when inflation is:
A. accounted for through indexing. B. low and stable. C. predictable. D. high and erratic.
There are 1,000 families in a neighborhood that are affected by noise pollution from a local factory. The noise could be reduced if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. However, because individuals will benefit from the reduction in noise whether they contribute or not, most people will not contribute and the firm will not make the improvements. This outcome is an example of the
A. drop-in-the-bucket problem. B. free-rider problem. C. Coase theorem. D. collective action problem (that arises when there are too many parties involved).
Answer the following statements true (T) or false (F)
1. If the representative firm in a monopolistic ally competitive industry has an optimal output where P< ATC, the industry will expand in the long run. 2. In the long run, typical firms that are monopolistic ally competitive earn economic profits. 3. Monopolistically competitive firms will achieve the most efficient allocation of society's resources because there are no significant barriers to entry into the industry. 4. Pure competition results in a lower price but identical output level compared to those in monopolistic competition. 5. Monopolistic competition provides the benefit of product variety but at the cost of productive inefficiency.