A temporary beneficial productivity shock would
A) shift the labor supply curve down and to the right.
B) increase the level of employment.
C) increase future income.
D) increase the expected future marginal product of capital.
B
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In perfect competition, the
A) market demand for the good or service is large relative to the minimum efficient scale of a single producer. B) market demand for the good or service is small relative to the minimum efficient scale of a single producer. C) market demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical. D) size of the market demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.
An important reason why diseconomies of scale arise is because firms may have to hire lower-skilled workers as firms expand
Indicate whether the statement is true or false