Which of the following is not consistent with perfect competition?
a. all firms face the same costs.
b. firms cannot determine the price of the goods they sell.
c. the marginal product of labor is diminishing.
d. firms negotiate the same wages for different workers.
B
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Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices
Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and the other license holders have begun offering a wide variety of perks to their clients to maintain market share. It is clear that the initial restriction on licenses gave Jane a _____. a. monopoly b. transitional gain c. transitional loss d. sense of security
Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to quantity of money demanded if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-the law of demand does not apply to money.
Suppose that this graph describes the current labor market for high school teachers:
Given an initial wage of w*, then immediately following a decrease in supply:
A. the reservation wage of each remaining teacher will fall. B. there will be a shortage of high school teachers. C. there will be an excess supply of high school teachers. D. the equilibrium wage will fall.
The percentage share of income of the top quintile on curve X is
A. 27.
B. 45.
C. 55.
D. 73.