Keynesians argue that changes in wages will lag price level changes even if expectations are formed rationally because
A) workers have very little bargaining power compared with that of management.
B) only a small percentage of workers are unionized.
C) wages are often set by long-term contracts.
D) workers often have incorrect information.
C
Economics
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Firms exist because of
A) incomplete contracts. B) team production. C) the incentive to free ride. D) all of these choices.
Economics
Which of the following statements regarding monopolistic competition is not correct?
a. In the long-run equilibrium, price equals average total cost. b. In the long-run equilibrium, firms earn zero economic profit. c. In the long-run equilibrium, firms charge a price above marginal cost. d. In the long-run equilibrium, firms produce a quantity in excess of their efficient scale.
Economics