Technological advance improves productivity in a purely competitive industry. This change will result in a shift:
A. Down of the individual firm's MC curve, causing the market supply curve to shift to the left
B. Down of the individual firm's MC curve, causing the market supply curve to shift to the right
C. Up of the individual firm's MC curve, causing the market supply curve to shift to the left
D. Up of the individual firm's MC curve, causing the market supply curve to shift to the right
B. Down of the individual firm's MC curve, causing the market supply curve to shift to the right
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Use the above table. If the marginal revenue product is $30, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?
A) 1; $10 B) 2; $15 C) 3; $20 D) 4; $25
Buying electricity off the freewheeling grid at one quarter 'til the hour for delivery on the hour illustrates:
a. relational contracts with distributors b. vertical requirements contracts c. spot market transactions d. variable price agreements
Evaluating tort law solely from the standard of economic efficiency,
a. tort law fails at spreading the risk. b. tort law deters specific behavior c. tort law punishes bad behavior. d. none of these is correct
The relationship between the quantity of inputs and the quantity of output is called the:
A. law of diminishing returns. B. average product. C. marginal product. D. production function.