If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that
A) the price of the product increased.
B) technical change occurred that increased labor productivity, reducing the firm's demand for labor.
C) demand for the product fell or there has been a reduction in labor productivity.
D) marginal factor cost increased.
Answer: C
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How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?
What will be an ideal response?
Which statement about competition is true?
A. To have competition, no firm is large enough to have any influence over price. B. There is little competition between firms in the United States. C. The American automobile industry would be considered competitive if there were at least four firms in the industry. D. There is no competition in American industry.