If the wage rate is fixed at a certain level, the:
a. labor supply curve is horizontal.
b. labor supply is a straight upward sloping line.
c. MP must be constant.
d. labor supply will increase at an increasing rate.
e. labor supply will increase at a decreasing rate.
a
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When a free-rider problem exists,
a. the market will devote too few resources to the production of the good. b. the cost of the good will always be more than the benefit of the good. c. the good will not be produced. d. entrepreneurs will eventually find a way to make free-riders pay their share.
Which core principle(s) could you use to explain why credit card issuers charge such high rates of interest?
What will be an ideal response?
Describe how a market for externality rights or cap-and-trade system would work in terms of supply and demand
Please provide the best answer for the statement.
Suppose two firms produce close substitutes such that reducing the price of one product reduces the quantity demanded of the other. If those two firms merge:
A. they can earn higher profits by continuing to sell both products if the profit gained from increased sales of one product are greater than the lost profits from reduced sales of the other product. B. they will eliminate the less profitable product and sell only one. C. they will raise prices on both products. D. they will be unable to earn higher profits because the two products will compete against each other.