A monopsony will never pay a wage that is
A) equal to the minimum wage.
B) less than the value of marginal product.
C) more than the value of marginal product.
D) negotiated with the union.
C
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When the percentage change in the quantity supplied is less than the percentage change in price, the supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly unit elastic. E) perfectly elastic.
Answer the following statements true (T) or false (F)
1) Even if a firm is found guilty of price fixing, after paying all imposed fines, it is still possible for the firm to earn positive economic profit from the price fixing scheme. 2) A manager of a firm located in the United States that sells some of its products abroad needs to comply only with United States antitrust law as the firm is only bound by the laws of the country in which it is located. 3) If a luxury handbag firm enters into an agreement with its distributors by setting the minimum price its distributors can resell its handbags, United States antitrust agencies could examine this agreement using the rule-of-reason. 4) If a software company enters into an agreement with its distributors to only resell its software in 5 specific states, under United States antitrust laws, this agreement is illegal per se. 5) If a software company charges different prices for its product in different areas of the United States, under United States antitrust laws, this agreement is illegal per se.
The infant industry argument is based on the idea that:
a. competitive pressure from established foreign firms would encourage the infant industry's prospects for future growth. b. failure to shelter these infant industries tends to lead to political instability. c. small firms must be protected. d. none of these.
Which of the following involves taking income from those with higher incomes and providing income to those with lower incomes?
a. Appropriation b. Labor-leisure tradeoff c. Economic stabilization d. Redistribution