The graph below represents the supply and demand for labor in a purely competitive market. The price of labor that an individual firm in this market would take as given is:
A. 0a
B. 0c
C. Higher than 0a
D. Higher than 0c
A. 0a
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Analyze the short-run and long-run effects of an unanticipated decrease in the money supply in the misperceptions model. Tell what happens to output, the price level, and the expected price level in both the short run and long run
What will be an ideal response?
Suppose that capital and labor must be kept in a fixed proportion to produce a particular good. For example, digging a trench requires one worker who has one shovel. What does this imply about returns to scale?
A) There are constant returns to scale. B) There are increasing returns to scale. C) There are decreasing returns to scale. D) Nothing.
A firm cannot price discriminate if it
a. has perfect information about consumer demand. b. operates in a competitive market. c. faces a downward-sloping demand curve. d. is regulated by the government.
A COLA is
A. a cost of living adjustment. B. a contract on long-term assets. C. a crisis of labor analysis. D. a center of labor activity.