An industry would be likely to lay off workers following:
A. An increase in the price of the firm's product
B. An increase in the marginal revenue product of labor
C. The imposition of a new minimum wage below the current equilibrium wage
D. A successful attempt by an industrial union to push wages above the marginal revenue product of labor
D. A successful attempt by an industrial union to push wages above the marginal revenue product of labor
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Explain the difference between a firm's revenue and its profit
What will be an ideal response?
Economies of scale enable financial institutions to
A) reduce transactions costs. B) avoid the asymmetric information problem. C) avoid adverse selection problems. D) reduce moral hazard.
A market with many sellers, some influence over price, low barriers to entry, a differentiated product, and non-price competition often taking the form of advertising is known as
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Each of the following has tended to foster competition except
A. more foreign competition. B. the declining importance of manufacturing. C. the rise of new industries. D. the declining number of corporate takeovers and mergers.