Suppose n identical Cournot firms purchase labor in a competitive labor market. How is the market demand for labor affected by the number of firms in the market?
What will be an ideal response?
Each firm chooses a quantity of labor demanded such that w = p(1 + 1/n?) MPL. As n increases, the demand for labor curve from the individual firm shifts leftward. With the increase in the number of firms, however, market demand shifts rightward.
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A net exports deficit or surplus equals
A) taxes minus savings plus public and private investment. B) the government sector balance plus the private sector balance. C) net lending by both the private and public sector plus savings minus investment. D) net worth plus the government sector balance minus the private sector balance.
Suppose the Tasty Taco Company produces tacos. The number of tacos it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each taco can be sold for 50 cents more than the cost of the ingredients needed to produce it. Number of workers per hourNumber of tacos per hour00125245360470575 If the hourly wage for people who make tacos is $8, then how many workers should the Tasty Taco Company hire each hour?
A. 1 B. 3 C. 2 D. 4