In the long run, a monopolistically competitive firm
A) earns zero economic profit.
B) produces at minimum average cost.
C) operates at full capacity.
D) All of the above.
A
Economics
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Unions may cause unemployment if:
A. outsiders push wages down. B. insiders force real wages higher than the market-clearing level. C. outsiders are subject to minimum-wage legislation. D. insiders are fired and outsiders are hired.
Economics
In the Keynesian model with efficiency wages
A) the full-employment line is determined where the quantity of labor demanded equals the quantity of labor supplied. B) the full-employment level is determined at the intersection of the labor demand curve and the efficiency wage line. C) an increase in labor supply increases employment. D) a decrease in labor supply shifts the FE line to the left.
Economics