Explain how the equilibrium wage rate is determined for a perfectly competitive industry and how a firm in that industry determines its profit maximizing employment level
What will be an ideal response?
In the above figure, the right-hand figure shows industry's labor market. The market wage is at the intersection of market labor supply and labor demand. The market wage is W, and equilibrium employment by all firms is L1 workers. The wage determines the supply curve that the perfectly competitive firm faces. The firm's demand curve for labor is the marginal revenue product curve, and the firm hires l1 workers.
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According to this Application, during the late 1980s, Argentina pegged its currency to the U.S. dollar. When the dollar appreciated sharply on world markets after 1995, this caused a large trade deficit in Argentina because
A) Argentina could no longer afford to purchase as many imported products. B) Argentinean exports grew relative to the nation's imports. C) U.S. exports to Argentina declined. D) Argentinean exports became relatively more expensive in global markets.
Examples of graphs of a single variable include pie charts, bar graphs, and time-series graphs
a. True b. False Indicate whether the statement is true or false