If the wage rate increases:
A. a purely competitive producer will hire less labor, but an imperfectly competitive producer
will not.
B. an imperfectly competitive producer will hire less labor, but a purely competitive producer
will not.
C. a purely competitive producer and an imperfectly competitive producer will both hire less
labor.
D. an imperfectly competitive producer may find it profitable to hire either more or less labor.
Answer: C
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The figure above shows the market for airline tickets. In early 2008 the price of jet fuel rose. This change is shown in the figure as a shift from
A) D0 to D1. B) D1 to D0. C) S0 to S1. D) S1 to S0.
An indifference map shows _____
a. all combinations of two goods that a consumer can afford to purchase b. all combinations of two goods that provide the same level of utility c. a set of indifference curves for a representative consumer d. all combinations of price and quantity that provide the same level of utility e. the combination of goods that a consumer can afford to buy
The owners of a business
a. are paid the market rate of return for resources they supply to the firm. b. are residual income claimants. c. have little incentive to monitor shirking on the part of employees. d. have little incentive to provide their employees with an incentive system that encourages operational efficiency.
If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
A. inflation whenever supply increases. B. production below potential GDP. C. production above potential GDP. D. rapid price increases when demand changes.