00:01
In a perfectly competitive market setting, which of the following would be true? so the best answer is wage rates trend towards marginal revenue product levels.
00:22
So firms will hire more labor when the marginal revenue product of labor is greater than the wage rate.
00:54
And they'll stop hiring when the two values are equal.
00:57
So it would make sense that wage rates would trend towards marginal revenue product levels because they'll stop hiring them when they become equal.
01:26
So for the next one, it says monopolistically competitive industry does not display in either the short run when firms are making, nor in the long run when firms are earning.
01:44
So we're going to fill in the blanks.
01:47
So it's going to be productive and allocated efficiency in either the short run when they are making profits and losses.
02:13
So they make profits and losses in the short run.
02:16
However, then in the long run they have zero profits.
02:31
So monopolistically competitive industry does not display productive allocated efficiency in either the short run when firms are making economic profits, or in the long run when they are earning zero profits...
