Which point in Figure 9-7 represents a break-even situation for a perfectly competitive firm?
a.
A
b.
B
c.
C
d.
D
e.
E
d
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For the monopsonist, marginal expenditure is greater than the wage rate because the monopsonist
A) pays a wage higher than that paid in a competitive market. B) chooses the perfectly competitive quantity of labor. C) must increase the wage to all units of labor to attract more units of labor. D) must take the wage as given by the market.
If demand is price inelastic, then when price rises, total revenue
a. will fall. b. will rise. c. will remain unchanged. d. may rise, fall, or remain unchanged. More information is need to determine the change in total revenue with certainty.
Fewer of an economy's resources will be channeled into building new factories and equipment when _____
Fill in the blank(s) with the appropriate word(s).
Firm 1 and firm 2 compete as a Cournot oligopoly. There is an increase in marginal cost for firm 1. Which of the following is NOT true?
A. Firm 1 will produce less. B. Both firm 1's and firm 2's reaction functions are shifted. C. Firm 2 will produce more. D. Profits of firm 1 will decrease.