If a firm has market power in the output market but buys labor in a competitive market, it will hire the same quantity of labor that a competitive firm will
Indicate whether the statement is true or false
False. Since the firm has market power, it must lower price if it wishes to sell more. It will wish to sell fewer units than a competitive firm, and, therefore, hire less labor than a competitive firm does.
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If the MPC = 0.9, the multiplier would be
A) 0.1. B) 2. C) 9. D) 10.
The above figure shows the market for pizza. Which figure shows the effect of a decrease in the price of a hamburger, which for consumers is a substitute for pizza?
A) Figure A B) Figure B C) Figure D D) Figures B and C
The definition of the adult population is those who are 16 years and older and who are
A. employed or unemployed. B. in the labor force or not in the labor force. C. in the labor force. D. not in the labor force.