In perfect competition, a firm's economic profit is equal to __________
Fill in the blank(s) with the appropriate word.
Ans: marginal revenue minus average total cost multiplied by quantity, price minus average total cost multiplied by quantity
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Which of the following is likely to cause a decrease in both the wage rate and the level of employment in an industry?
A) A right shift in the supply curve for labor, without any change in the demand curve for labor B) A left shift in the supply curve for labor, without any change in the demand curve for labor C) A right shift in the demand curve for labor, without any change in the supply curve for labor D) A left shift in the demand curve for labor, without any change in the supply curve for labor
Refer to the above figure. A surplus occurs if the government imposes
A) a price floor at $60. B) a price floor at $20. C) a price ceiling at $60. D) a price ceiling at $20.
The country reflecting perfect income equality in the above figure is
A) country 4. B) country 1. C) country 5. D) country 3.
The supply of human capital to a particular use is
a. perfectly inelastic in the short run. b. perfectly elastic in the long run. c. more inelastic in the short run since it takes time for persons to acquire a particular skill. d. more elastic in the short run since individuals who already possess the particular skill can be attracted into the labor force in the short run.