Figure 10-8
?
In the long run, the perfectly competitive firm in Figure 10-8 will leave the industry if the price falls below
A. $10.
B. $9.
C. $5.
D. $2.
Answer: B
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Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?
Which of the following is NOT true about the supply of labor to the firm in a competitive labor market?
A) It is horizontal. B) It is perfectly elastic. C) It is equal to the marginal expenditure curve. D) It is upward sloping.
The price elasticity of demand for a horizontal demand curve is:
a. 0. b. -1. c. 1. d. - infinity.
How much money do you need to put into a savings account that pays 10% interest compounded annually to have $10,000 in ten years?
a. $3,855.43 b. $2,881.22 c. $1, 926. 85 d. $ 3,026. 77