The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, the firm will hire
A) 10 units of labor per hour.
B) 5 units of labor per hour.
C) 2.5 units of labor per hour.
D) 0 units of labor per hour.
B
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A person who has an absolute advantage in the production of all goods will
A) also have a comparative advantage in the production of all goods. B) not be able to gain from specialization and exchange. C) have a production possibilities frontier with a constant slope. D) have a comparative advantage in the production of some goods but not in the production of others.
In a partnership, the owners of the business and the business are ________, and in a sole proprietorship, the owner of the business and the business are ________
A) not separate legal entities; also not separate legal entities B) separate legal entities; also separate legal entities C) not separate legal entities; separate legal entities D) separate legal entities; not separate legal entities