In the Baumol model, a change in fixed costs will
A) increase total quantity sold.
B) have no effect on total quantity sold.
C) decrease total quantity sold.
D) have an effect on total quantity sold.
D
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When compared to perfect competition, in a monopsony
A. there is deadweight loss. B. there is no deadweight loss. C. consumer surplus decreases. D. the price is lower and the quantity is higher.
Which of the following is not true about the demand curve for labor of a competitive firm? a. As the wage rate the firm pays decreases, the quantity of labor it demands (employs) increases
b. It shows how much labor the firm is willing to employ at different wage rates. c. It is identical to the marginal revenue product curve of labor. d. The wage rate exceeds the workers' opportunity costs. e. It is downward sloping.