The price setting equation is represented by the following: P = (1 + m)W. When there is perfect competition, we know that m will equal
A) W.
B) P.
C) 1.
D) W/P.
E) none of the above
C
Economics
You might also like to view...
What is cost-benefit analysis? What are the steps involved in using cost-benefit analysis to make the optimal choice?
What will be an ideal response?
Economics
Which one of the following is TRUE about the effects of fiscal policy?
A) A decrease in government spending will decrease aggregate demand. B) A tax change does not have any direct or indirect effects on aggregate demand. C) A decrease government spending will increase aggregate supply. D) An increase in government spending will reduce aggregate demand.
Economics