Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
What will be an ideal response?
Answer: The equilibrium wage rate and the equilibrium quantity of labor will both decrease.
Economics
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The table above shows the demand and costs for a single-price monopolist. The firm can maximize its profit by selling
A) 0 units. B) 20 units. C) 40 units. D) 60 units.
Economics
Firms in which market structure hold the most market power?
(A) Monopolistic competition (B) Oligopoly (C) Monopoly (D) Perfect competition
Economics