In a market with imperfect product competition, the MRP declines because
a. the MP declines with each worker hired.
b. the price of output falls as output increases.
c. both output price and the MP decline as output increases.
d. MC declines as output increases.
c. both output price and the MP decline as output increases.
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A bank in Checkland lends a sum of $100 billion to a business firm in Zoroland. Checkland makes a donation of $5 million to a charity in Zoroland. A retail giant in Zoroland opens a new facility in Checkland that is worth $100 billion
Total foreign direct investments in Checkland equal: A) $100 billion. B) $205 billion. C) $200 billion. D) $105 billion.
Other things being equal, a decrease in the workplace amenities, such as decreased health care and less generous vacation options, would tend to shift the labor supply curve to the ____, thereby causing the market wages to ____
a. right; fall b. right; increase c. left; fall d. left; rise
Assume potential GDP is 7T. If the economy is at a short run equilibrium where real GDP is at 8T then there is an ____ and a labor ___
a. expansion; surplus b. recession; shortage c. recession; surplus d. expansion; shortage
Which of the following best describes perfect competition?
A. 40 firms producing an identical product. B. All firms earning an economic profit in the long run. C. Many firms, some large and some small, with perfect knowledge. D. Hundreds of very small firms, producing an identical product.