The backward-bending supply curve for labor occurs because _____
a. as wages increase, individuals pay higher taxes
b. as wages increase, individuals consume more leisure
c. as wages increases the number of hours worked increase
d. as wages increase, employers cannot afford as many hours
b
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Trade barriers are politically popular because
A) they are a way to avoid trade wars and still protect domestic producers. B) people recognize their use as a negotiating tool in international relations. C) their benefits are widespread, while their costs are highly concentrated. D) their benefits are concentrated, while their costs are widespread.
A market situation where a small number of sellers compose the entire industry is called
a. monopolistic competition. b. monopsony. c. monopoly. d. oligopoly.
Arturo runs a Taco Bell franchise. He is selling 250 Gordita Supremes per week at a price of $2.75. If he lowers the price to $2.70, he will sell 251 Gordita Supremes
What is the marginal revenue of the 251st Gordita Supreme? If selling the extra Gordita Supreme adds $0.20 to Arturo's costs, what will be the effect on his profit from selling 251 Gordita Supremes instead of 250?
A player's best response is
A) the strategy that maximizes his payoff given what he thinks the other player will do. B) a dominant strategy. C) impossible to find when there isn't a Nash equilibrium. D) a way to avoid the prisoners' dilemma.