Efficiency wages are:

A. above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.
B. wage payments necessary to compensate workers for unpleasant or risky work conditions.
C. usually less than market wages.
D. relevant to macroeconomics because they explain rightward shifts in aggregate demand.

A. above-market wages that bring forth so much added work effort that per-unit production costs are lower than at market wages.

Economics

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Why does a firm in perfect competition produce the quantity at which marginal cost equals price?

What will be an ideal response?

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Monopolistic competition is characterized by many buyers and sellers, product differentiation, and barriers to entry

a. True b. False Indicate whether the statement is true or false

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