For a firm to be engaged in predatory pricing, and for it to be successful:
a. It would have to charge a price less than the average variable cost of production.
b. It would have to drive rivals out of the market
c. It would have to raise its prices after rivals were driven out of the market.
d. All of the above would have to be true.
d
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Suppose the marginal product of labor equals 1/L. If the wage is $1 per unit of labor, what is the short-run effect on the firm's labor demand if the price of output were to double?
A) The firm will demand half as much labor. B) The firm will demand twice as much labor. C) The firm will demand the same quantity of labor. D) There is not enough information to determine.
The unemployment rate is the
A. ratio of unemployed to employed workers. B. number of employed workers minus the number of workers who are not in the labor force. C. percentage of the civilian labor force which is out of work. D. percentage of the total population which is out of work.
Refer to the above table. If the price is $3 the maximum profit this firm could earn is
A. -$99. B. -$100. C. $99. D. $306.
Which of the following economic effects of unions tends to improve efficiency?
A. Featherbedding B. Strike or lockout C. Union wage advantage D. Voice mechanism