If output is above its natural rate, then according to sticky-wage theory
a. workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level.
b. workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce more at any given price level.
c. workers will strike bargains for higher wages. In response to the higher wages firms will produce less at any given price level.
d. workers and firms will strike bargains for higher wages. In response to the higher wages firms will produce more at any given price level.
c
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Many communities use a mixed-flow recycling program in which various types of bottles, cans, and other containers are placed in a single recycling bin
Suppose a community alters its recycling program by mandating that the containers must be sorted by type of material (i.e., glass, aluminum, plastic). What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers? A) Optimal quantity increases B) Optimal quantity decreases C) Optimal quantity remains unchanged D) We cannot determine the outcome of this policy change without having more information
Price equals the minimum of long-run average cost
A) in a long-run equilibrium. B) in a short-run equilibrium as well as in a long-run equilibrium. C) whenever average revenue equals marginal cost. D) along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.