If the effective rate of protection is greater than the nominal rate of protection, there must be tariffs on intermediate products

If the marginal cost of a perfectly competitive firm producing a good is $50 and the market price of the good is $100, the firm should:

A) decrease its output. B) increase its output. C) try to increase the market price. D) try to decrease the market price.

According to the neoclassical theory of distribution, the wages paid to John Deere tractor assembly line workers are higher than those paid to fast food workers because assembly line workers

a. have college degrees, on average, whereas fast food workers usually do not. b. produce a product of greater market value than do fast food workers. c. work in a less stressful environment than do fast food workers. d. are less likely to belong to a labor union than are fast food workers.