The above figure shows the labor market in an undeveloped nation. A minimum wage has an effect on the market for low-skilled labor if it is set at
A) $2.00.
B) $3.00.
C) $4.00.
D) all of the above
C
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $13, Marko's will produce
A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.
Sellers may choose not to sell in certain markets because: a. it is possible to practice price discrimination against customers
b. buyers are unable to perceive the high quality of their goods and are, therefore, less willing to pay for them. c. they are able to impose negative externalities on third parties. d. an above-average profit potential is projected.
Why do airlines often charge students and vacationers a lower price than business travelers?
a. It is cheaper to provide airline service to students and vacationers than to business travelers. b. The demand of business travelers is generally more elastic than the demand of students and vacationers. c. The demand of students and vacationers is generally more elastic than the demand of business travelers. d. Airlines prefer to deal with students and vacationers rather than business travelers.
Increasing returns in production implies the following, except:
A. Increasing labor-requirements per unit of output B. Decreasing per-unit production costs C. Economies of scale D. An increase in the productivity of inputs