The marginal factor cost facing each employer in a competitive labor market is greater than the market wage rate.
Answer the following statement true (T) or false (F)
False
A competitive labor market will tend toward an equilibrium wage rate where quantity of labor demanded is equal to the quantity of labor supplied.
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A budget line shows the
A) consumption possibilities of a consumer at a given level of income and prices. B) complete set of preferences for a household at various incomes. C) consumption possibilities for several sets of relative prices at a level of income. D) rate at which consumers wish to substitute one good for another.
What are the five most important variables that shift the market supply curve?
What will be an ideal response?
Refer to the table below. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, what is the marginal benefit for each unit of lumber produced?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $13.50
B) $16.50
C) $10.50
D) $3.00
In the long run, firms in a perfectly competitive market produce:
A. at a quantity with positive economic profits. B. where average variable costs are minimized. C. where MC is at its lowest point. D. where price equals marginal cost.