Time left 1:26:22 Hide Consider an economy with firms selling differentiated products, where the only input to production is labour. Which of the following statements is correct? Select one: a. Firms make no economic rent. b. Workers receive no employment rent. c. None of the listed answers is correct. d. Firms choose the level of nominal wage that corresponds to the workers' maximum effort. e. The more inelastic the demand curve faced by the firm, the higher the markup set by the firm. MacBook Air
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The question asks to identify the correct statement about an economy where firms sell differentiated products and labor is the only input. This scenario typically relates to models of imperfect competition, such as monopolistic competition or efficiency wage Show more…
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Danielle F.
23. The short run is a period of time in which a) the amount of output produced is fixed b) there is a shortage of most inputs c) the quantities of some inputs are fixed and others can be varied d) there is not enough time to make all of the decisions 24. The marginal product of labour is the change in total product caused by a) a one-unit increase in the quantity of labour employed, holding the quantity of capital constant. b) a one-unit increase in the quantity of capital employed, holding the quantity of labour constant. c) a one-unit increase in both the quantity of labour and capital employed d) a change in the cost of labour 25. Output will increase by less than 10 percent when all inputs are increased by 10 percent if a) marginal cost is decreasing b) the long-run average cost curve is negatively sloped c) increasing returns to scale are present d) decreasing returns to scale are present 26. A choice by an individual which is intended to make him or her as well-off as possible is called a(n) a. Economic choice b. Normative choice c. Rational choice d. Positive choice 27. An economist's generic name for a business organization is a. A multinational b. A firm A corporation d. A partnership e. An organization 28. Which of the following concepts is not illustrated by a production possibility frontier a. Scarcity b. Monetary exchange C. d. Opportunity cost Attainable and unattainable points e. The tradeoff between producing one good versus another 29. In order to optimize, people must a. be able to carry out complex mathematical calculations b. Have unlimited resources с. Be free from government constraints d. Evaluate the cost of alternative actions 30. When economists say that people are rational, they mean that people a. Do not make errors of judgment b. с. Make the best decision from their perspective Act on complete information d. Will not later regret any decision made now 31. Changes in which of the following variables will not shift the demand curve? a. Income b. Price of other goods c. The price of the good itself d. Population size
Donna D.
Which of the following statements is false? a. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. b. When economic profit is zero, the firm's owners could NOT have done better putting their resources in some other industry of comparable risk. c. If economic profit is positive, accounting profit must also be positive. d. If economic profit is negative, accounting profit must also be negative. e. None of the above statements is false. 2. When marginal revenue is positive, a. demand is elastic. b. marginal revenue is greater than price. c. decreasing price will decrease total revenue. d. both b and c e. all of the above 3. When a perfectly competitive industry is in long-run equilibrium, a. firms have no incentive to enter or exit the industry. b. market price is equal to minimum long-run average cost. c. the owners of each firm earn a return equal to the opportunity costs of their owner-supplied resources. d. all of the above e. both a and c.
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