A firm in a perfectly competitive industry is a

A) price taker.
B) quantity taker.
C) profit maker.
D) price maker.

Answer: A

Economics

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If the supply of labor to a monopsonist is everywhere unit elastic, and the marginal expenditure equals $1, then the wage will equal

A) $0.50. B) $0.75. C) $1.00. D) $2.00.

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What is the major cost associated with fighting ongoing inflation?

a. Higher interest rates. b. Lost potential output. c. Lower price level. d. Higher price level. e. None of the above.

Economics