Sometimes wages are set above the equilibrium level when
a. garbage collectors earn higher wages than secretaries due to compensating differentials.
b. accountants earn more than dental technicians due to higher educational requirements.
c. movie superstars earn more than talented plumbers.
d. unions negotiate higher wages by threatening to strike.
d
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To increase its profit, a perfectly competitive firm will produce more output when
A) price is greater than average fixed cost. B) price is greater than marginal cost. C) marginal cost is less than average total cost. D) average variable cost is greater than average fixed cost. E) price is greater than average variable cost.
Refer to Figure 12.7. Which of the following statements is true?
A. Both Fred and Barney have a dominant strategy. B. Neither Fred nor Barney has a dominant strategy. C. Fred has a dominant strategy but Barney does not. D. Barney has a dominant strategy but Fred does not.