When there is a positive return to monopsony power, this means
a. many employers share economic profits from exploiting workers
b. workers have been successful in forming unions
c. labor markets are perfectly competitive
d. workers are paid less than in a competitive labor market
e. wages are equal to the marginal revenue product of labor
D
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With a partial trade agreement
A) goods and services are allowed to cross boundaries without tariffs. B) two or more countries agree to liberalize trade in a selected group of categories. C) two or more countries set common tariffs toward non-members. D) two or more countries allow the free mobility of inputs such as labor and capital. E) two or more countries agree on establishing a common currency.
Always Round Tire has a production function of Q = 300 L.75 K.5. If Always Round Tire doubles the size of its production facility-increasing L from 250 to 500 and K from 25 to 50 -what happens to the cost of production, even though we do not know the wages of labor or the price of capital?
What will be an ideal response?
The French production possibilities curve shifts to the right when there is
a. a decrease in the French capital stock b. a decrease in the French labor supply c. high unemployment in France during the previous period d. only consumer goods production in France during the previous period e. technological innovation in the production of French goods
Exhibit 9-2 A monopolistic competitive firm
?
To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 9-2 will charge a price per unit of:
A. zero. B. $5. C. $10. D. $15.