Refer to the diagram. The MRC curve lies above the labor supply curve because:
A. any number of workers can be hired at the going equilibrium wage rate.
B. the firm must lower product price to increase its sales.
C. the higher wage needed to attract additional workers must also be paid to the workers
already employed.
D. there is an inverse relationship between wage rate and the amount of labor employed.
C. the higher wage needed to attract additional workers must also be paid to the workers
already employed.
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John Maynard Keynes referred to economics as an easy subject,
a. at which very few excel. b. but not as easy as philosophy or the pure sciences. c. which very few can enjoy. d. which deals primarily with common sense.
Answer the following statement(s) true (T) or false (F)
1. Monopolistic competition is a market structure where many producers of identical products compete with one another 2. Monopolistic competition is closer to competition than to monopoly. 3. Product differentiation is the accentuation of unique product qualities, real or perceived, to develop a specific product identity. 4. Price is one of the four main types of product differentiation. 5. Physical differences are considered to be a primary source of product differentiation.