A pay cap, acting as a price ceiling, for superintendent pay would do what in the labor market?
A. Decrease the supply of superintendents.
B. Cause a shortage of superintendents.
C. Increase the demand of superintendents.
D. Cause a surplus of superintendents.
Answer: B
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The above figure shows the demand for cable and the cable company's cost of providing cable
a. What price and quantity will be produced if the company is unregulated and profit maximizes? b. What price and quantity will be produced if the company is regulated using the marginal cost pricing rule? c. What is the advantage of the marginal cost pricing rule? d. What price and quantity will be produced if the company is regulated using the average cost pricing rule? e. What is the advantage of the average cost pricing rule?
The relationship between the quantity of inputs and the quantity of outputs is called a:
A. cost function. B. production function. C. profit function. D. resource function.
The typical labor supply curve
A. equals the marginal product of labor. B. slopes down. C. is u-shaped. D. depends on the size of the firm. E. slopes up.
When there is a shortage of a product in a market the:
A. price will fall. B. price must be below the equilibrium price. C. price must be above the equilibrium price. D. producers will reduce output and sales will fall.