An increase in the minimum wage will tend to cause which of the following to occur?
A) an increase in the size of the surplus of labor
B) a leftward shift in the demand for labor
C) a rightward shift in the supply of labor
D) a reduction in the unemployment rate
Answer: A
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A monopolistically competitive firm has excess capacity because in the
A) short run its MR exceeds its MC. B) short run its ATC is less than its AVC. C) long run its ATC exceeds its minimum ATC. D) long run it makes an economic profit.
Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firm's
A) accounting profit was $1,000, and its economic profit was -$500. B) accounting and economic profits were both $1000. C) accounting profit was -$500, and economic profit was $1,000. D) accounting profit was $1000, and economic profit was -$1,500.
All of the following are characteristics of a monopsony employer except: a. there is a single buyer of labor
b. the monopsony firm moves up the positively sloped supply curve it faces. c. fewer number of workers hired for wages below what they would be in a competitive market. d. workers work for less than their marginal revenue product.
An increase in price will increase supply
a. True b. False Indicate whether the statement is true or false