Why is the typical furniture manufacturing firm’s demand for labor curve inversely related to the wage rate it has to pay for labor?
What will be an ideal response?
Ans: This is because as the furniture manufacturing firm hires more employees, they will have to pay those employees at a lower wage rate in order to maintain equilibrium.
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Three firms agree to operate as a monopoly and charge the monopoly price of $100 for their product and (jointly) produce the monopoly quantity of 20,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of ______
A) $1,300,000 B) $3,900,000 C) $3,000,000 D) $1,000,
Don worked as a machinist all his life, and was recently laid off because his plant closed and the jobs were outsourced to India. There don't seem to be any machinist jobs in the area anymore. Don would be considered:
A. frictionally unemployed. B. structurally unemployed. C. real-wage unemployed. D. Don is a discouraged worker.
Suppose Max values a concert ticket at $45 . Charles values the same concert ticket at $40 . The pre-tax price of a concert ticket is $30 . The government imposes a tax of $5 on each concert ticket, and the price rises to $35 . The deadweight loss from the tax is
a. $15. b. $10. c. $5. d. $0.
Describe the monetary policy known as inflation targeting. What are the three major issues that surround this practice?