Discuss some of the reasons behind downward stickiness of wages and prices
Empirical evidence supports several explanations for the downward stickiness of wages and prices. Firms may not be able to legally cut wages because of long-term labor contracts or a legal minimum wage. Efficiency wages may also limit a firm's ability to lower wage rates. Menu costs may cause price inflexibility as well.
Economics
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If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
a. marginal factor cost is $6. b. marginal factor cost is $200. c. total wage cost is $1,200. d. total wage cost is $7,200. e. $6 wage is too high.
Economics
How are monopolistic ally competitive industries identified with concentration ratios?
What will be an ideal response?
Economics