In both perfect competition and monopolistic competition, each firm
a. has some monopoly power.
b. sells a product that is at least slightly different from those of other firms.
c. faces a downward-sloping demand curve.
d. has many competitors.
d
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According to the efficiency wage model, firms will pay the real wage that
A) maximizes workers' marginal productivity. B) maximizes the marginal productivity of capital and the marginal productivity of labor together. C) maximizes effort per dollar of real wage. D) minimizes hiring and training costs to the firm.
"Mismatch" unemployment is another name for ________ unemployment
A) frictional B) structural C) cyclical D) natural
The greater the product differentiation,
a. the more elastic a firm’s demand curve. b. the less elastic a firm’s demand curve. c. the less the price difference between competing firms. d. the closer to perfect competition.
Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit. b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit. c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit. d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit. e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.