Based on the above scenario, is the industry in the long run equilibrium?
a. yes, because all firms are producing at P=MR=MC
b. no, because the price is still greater than the minimum average total cost.
c. cannot answer because need information on MR
d. cannot answer unless we see that the market lets some firms enter and/or some firms exit.
b
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A monopsony maximizes its profit by hiring the level of employment that sets
A) labor supply equal to labor demand. B) the value of marginal product equal to the wage. C) the value of marginal product equal to the marginal cost of labor. D) the value of marginal product equal to the demand for labor.
Most Keynesian macroeconomists today ________ the natural rate hypothesis, which has helped lead to the ________ of Keynesian macroeconomics in the 1990s
A) reject, near-total extinction B) reject, revival C) accept, near-total extinction D) accept, revival