In considering real-world situations, we must recognize the fact that by "wages" in this chapter, we mean the following, except:
A. Total price that employers pay to obtain labor
B. Total income earned by households
C. Total compensation of workers
D. Total of direct payments and fringe benefits to workers
B. Total income earned by households
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Which of the following demand factors are under the control of management?
a. price of product b. advertising c. price of competitors' products d. customer service e. all except c
To determine whether a market is perfectly competitive, economists examine the
a. number of firms in the market. b. similarities among the products of the different firms in the market. c. ease of entry and exit by firms in the market. d. All of the above are correct.
If the market for a product is broadly defined, then
A) the good has many complements. B) there are few substitutes for the product and the demand for the product is relatively inelastic. C) there are many substitutes for the product and the demand for the product is relatively elastic. D) the expenditure on the good is likely to make up a large share of one's budget.
A monopolistically competitive firm that is incurring a loss will produce in the short run as long as the revenue the firm receives is sufficient to cover
A. advertising costs. B. marginal costs. C. variable costs. D. fixed costs.