Assume a firm is run as a zero-profit enterprise. Which of the following would be true?
A) There is a higher probability that wage reductions would outweigh layoffs.
B) Those in charge would not act any different than regular owners, there would still be layoffs.
C) Those not in charge would remain risk neutral.
D) Wage reductions would be lower than they would be if the firm was run for profit.
A
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Refer to Table 4-8. If a minimum wage of $10.50 an hour is mandated, what is the quantity of labor demanded?
A) 400,000 B) 370,000 C) 340,000 D) 60,000
Which of the following is among the possible reasons that the 2007-2009 financial crisis did not result in an economic depression?
A) the declaration of a bank holiday by the nation's President B) international policy coordination C) strict reliance on conventional monetary policy D) government spending restraint
Oligopoly describes a market with:
A. many sellers. B. one seller. C. only a few sellers. D. few or many sellers, but only one buyer.
If an oligopolist reduces the price of its product relative to its competitors: a. some customers will switch to rival firms
b. the number of customers it has will likely remain unchanged. c. some customers will switch from rival firms to buy from him. d. rival firms are unlikely to react.