If wages are above the MRP, a firm should employ more labor.
Answer the following statement true (T) or false (F)
False
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Which of the following has the highest present value?
A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 12%
If the demand curve facing a firm shifts outward, then
a. there is a decline in the maximum price the firm can charge at each quantity it may want to sell b. there is an increase in the maximum price the firm can charge at each quantity it may want to sell c. the firm would need to increase the quantity it wants to sell in order to generate a rise in the price d. the firm would need to decrease the quantity it wants to sell in order to generate a rise in the price e. there is a decrease in the maximum quantity the firm can sell at each price it may want to charge
Resources are used to create goods and services
a. True b. False Indicate whether the statement is true or false
Arnold Harberger was the first economist to estimate the loss of economic efficiency due to market power. Harberger found that
A) the loss of economic efficiency in the U.S. economy due to market power was less than 1 percent of the value of production. B) because of the increase in the average size of firms since World War II, the loss of economic efficiency has been relatively large, about 10 percent of the value of total production in the United States. C) although the number of monopolies was small, the large number of other non-competitive firms in the United States resulted in a large loss of economic efficiency, about 20 percent of the value of total production. D) the loss of economic efficiency in the U.S. economy due to market power was small around 1973, about 1 percent of the value of production, but has since grown to about 10 percent.