A weakness in the classical economic claim that a recession is caused by a decrease in labor demand curve is
a. that labor demand never changes
b. that labor demand increases during a recession
c. that labor supply decreases during a recession
d. the confusion between a shift of the labor demand curve and a movement along that curve
e. the impossibility in the classical model of total spending ever being deficient
E
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When existing firms leave a perfectly competitive industry, ________
A) the equilibrium price decreases, while the equilibrium quantity increases B) the equilibrium price increases, while the equilibrium quantity decreases C) both the equilibrium price and quantity increase D) both the equilibrium price and quantity decrease
When a pure monopolist is producing its profit-maximizing output, price will:
A. be less than MR. B. equal neither MC nor MR. C. equal MR. D. equal MC.