The infant industry argument is based on the idea that:
a. competitive pressure from established foreign firms would encourage the infant industry's prospects for future growth.
b. failure to shelter these infant industries tends to lead to political instability.
c. small firms must be protected.
d. none of these.
d
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Why would a firm pay efficiency wages?
What will be an ideal response?
All else held constant, if farmers receive a subsidy for their corn, then this would cause a
A. movement up along the current supply curve of corn. B. movement down along the current supply curve of corn. C. rightward shift in the current supply of corn. D. leftward shift in the current supply of corn.
If the industry in the above figure was perfectly competitive, the level of output would
A) be less than the single-price monopoly level of output. B) be the same as the single-price monopoly level of output. C) exceed the single-price monopoly level of output by 20 units per day. D) exceed the single-price monopoly level of output by 60 units per day.
In the above figure, the curve labeled MCL is the marginal cost of labor curve and is used in a
A) competitive situation in which individual firms cannot influence the wage rate they must pay. B) competitive situation in which skill differentials create a difference between what a firm must pay labor versus the wage at which households are willing to supply labor. C) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is less than the marginal cost of labor. D) monopsony situation in which the firm can influence wages by how much labor it hires, so that the wage rate received by workers is greater than the marginal cost of labor.