Dominant firms tend to lag in innovation because
A) of the sunk cost effect.
B) entrepreneurs are found in smaller firms.
C) they are usually focused on market share.
D) all of these choices.
D
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The above figure illustrates the labor market for fast food restaurants in a small city in Peru. What would be the effects of a minimum wage imposed at $4 per hour?
A) a shortage of 200 hours B) a shortage of 100 hours C) a surplus of 200 hours D) nothing because the minimum wage has no effect on the equilibrium price and quantity
When the supply of labor to a firm is perfectly elastic the marginal factor cost will equal the
A) market price of the product. B) wage rate. C) marginal physical product. D) wage rate times the number of workers.
Why is a monopoly inefficient?
What will be an ideal response?
The minimum wage, if it is binding, lowers the incomes of
a. no workers. b. only those workers who become unemployed. c. only those workers who have jobs. d. all workers.