Under perfect competition, entry of new firms into the market in the long run tends to:
a. raise the aggregate supply.
b. raise the level of profit of the existing firms.
c. raise the aggregate demand for goods.
d. reduce the degree of competitiveness in the market.
e. reduce the market power of the existing firms.
a
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A reason the production possibilities frontier exists is
A) unlimited resources and technology. B) scarcity of resources. C) scarcity of resources and unlimited technology. D) unemployment. E) that people's wants are unlimited.
The marginal product of labor is the change in
A) total cost from employing one more worker. B) total revenue from employing one more worker. C) average product from employing one more worker. D) total output from employing one more worker. E) total output divided by the change in cost from employing one more worker.