In the long run, new firms can enter an industry and so the supply elasticity tends to be
A) more elastic than in the short run.
B) less elastic than in the short run.
C) perfectly elastic.
D) perfectly inelastic.
A
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What defines a monopsony?
a. quantity of labor b. wage equilibrium c. minimum wage d. number of buyers
Why are the following included in the broader definition of supply known as M2? (a) money market deposit accounts (b) money market mutual funds (c) savings accounts
What will be an ideal response?
In the short run, a competitive firm has a marginal product of labor, MPL = 2L-0.25. The output price is $4 per unit and the wage is $5 per hour. The short-run labor demand curve for the firm is
A) 10L-0.25. B) 8L-0.5. C) 4L0.25. D) 8L-0.25.
The default risk premium is measured
A) by an index published monthly by the Securities and Exchange Commission. B) by an index published monthly by The Wall Street Journal. C) as the difference between the yield on a non-Treasury security and the yield on a U.S. Treasury security of the same maturity. D) as the difference between the nominal yield on the security and the real after-tax yield on the security.