The theory of factor pricing uses supply-demand analysis.
Answer the following statement true (T) or false (F)
True
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Suppose we observe people buying more of a good even though its price has risen. What would an economist conclude?
A) Impossible! We will never observe prices and quantity simultaneously rising in the real world. B) The demand curve for the good must be upward-sloping. C) The law of demand doesn't hold. D) The demand curve has shifted to the right. E) Consumption increasing as prices increase only occurs when a good is needed for survival.
When firms have agreements among themselves on the quantity to produce and the price at which to sell output, we refer to their form of organization as a
a. Nash arrangement. b. cartel. c. monopolistically competitive oligopoly. d. perfectly competitive oligopoly.
The optimal hiring rule is to employ labor up to the point where:
a. wage = MP. b. wage = MR. c. wage = MRP. d. wage = MFC.
According to the graph shown, if the market is in equilibrium, producer surplus is:
A. $30. B. $50. C. $20. D. $60.