When deciding on output levels, members of a cartel
A) set their output where MR = MC.
B) produce the same level of output as if they were in a competitive market.
C) take into account the impact of changes on members' profits.
D) act as if they were monopolies.
C
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Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The supply of labor decreases. E) The demand for labor is perfectly elastic.
Search activity ________
A) occurs when there is a surplus of the good B) is unnecessary when a black market exists C) increases when an effective price ceiling is set on a good D) decreases when an effective price ceiling is set on a good
The economic theory of labor markets leads to the conclusion that professional athletes who are paid tens of thousands of dollars per appearance must be paid more than their marginal revenue product
a. True b. False Indicate whether the statement is true or false
In a competitive labor market, if a firm pays a worker less than that worker's VMP, then in the long run:
A. competing firms will hire the worker away. B. the supply of workers will fall. C. the firm will earn positive economic profits. D. the worker will have no incentive to work hard.