Perfect competition and monopolistic competition are similar in that firms in both types of market structure will.
A) act as price takers.
B) produce a level of output where price equals marginal cost.
C) earn zero profit in the long run.
D) act as price setters.
Answer: C) earn zero profit in the long run.
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Suppose a monopolist faces the demand curve shown below. 
The marginal revenue of the 35th unit of output is:
A. $-5. B. $20. C. $10. D. $0.
Which of the following summarizes the impact of population growth on the labor market?
A) This will increase the labor supply, reduce the equilibrium wage and increase the quantity of labor demanded. B) There will be an increase in both the demand for labor and the supply of labor. As a result, the equilibrium wage will not change. C) There will be an increase in the demand for labor. As a result, the wage rate will rise and the quantity of workers supplied will decrease. D) There will be an increase in the demand for jobs. This will result in an increase in the equilibrium wage rate and a movement along the labor supply curve.
A product that has an elastic demand curve has all of the following characteristics EXCEPT
A) it has many substitutes. B) a consumer can wait to buy the product. C) it has few or no substitutes. D) it is a large part of a consumer's income.
For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:
a. wage rate. b. price of the firm's product. c. interest rate. d. firm's total revenue.