What types of things are sold in input or factor markets? Who are the buyers and sellers in these markets?
What will be an ideal response?
Resources used to produce goods and services are sold in input markets. These include labor, capital, and land. In input markets, households are the sellers (suppliers) and firms are the buyers (demanders).
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Assume a perfectly competitive firm is producing 300 units of output, P = $10, ATC of the 300th unit is $8, marginal cost of the 300th unit = $10, and AVC of the 300th unit = $6. Based on this information, the firm is:
A) earning an economic profit of $600. B) earning an economic profit of $1,200. C) incurring a loss of $600. D) incurring a loss of $1,200.
To date, the longest prison sentence for violating the Sherman Act has been ________ years.
A) ten B) eight C) two D) five
After an employer pays the cost of educating a worker,
a. the worker has a higher level of human capital. b. the worker should become more productive. c. the worker might look for another job unless his employer pays him more. d. All of the above are correct.
“Pure monopoly guarantees economic profits.” Discuss whether this is a valid statement
What will be an ideal response?