The more inelastic the consumer demand for the final product, the
A) greater will be the economic profit in a competitive market.
B) greater the impact on employment from a change in the wage rate.
C) more inelastic the demand for labor producing the product.
D) more responsive the output demand to a change in the price of labor.
C
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Perfectly competitive firms are price setters.
Answer the following statement true (T) or false (F)
Refer to Figure 3.1. If Marge and Homer both confess to the crime, what is Marge's payout?
A) 1 year B) 2 years C) 7 years D) 15 years
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:Q = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below: 
height="198" width="577" />Given the above, if Build-Right decides to charge the State Highway Department $55 per yard for its cement when tax revenues per capita are $3,200 and the price of asphalt is $35 per yard, the expected quantity demanded is A. 6,000 yards of cement. B. 1,000 yards of cement. C. 2,000 yards of cement. D. 8,000 yards of cement. E. 4,000 yards of cement.
The fact that the price of a gallon of milk is likely to be more expensive at a convenience store than at a supermarket is an example of:
A. normative economics. B. market forces. C. political forces. D. social forces.