The wage rate is determined by
A. the interaction of supply and demand in the market.
B. the substitution and income effects of supply.
C. the U.S. government in all circumstances.
D. None of the choices are correct.
A. the interaction of supply and demand in the market.
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Which of the following statements is true?
A) Optimization requires individuals to foresee the future perfectly. B) An optimizing individual need not consider the risks involved in various choices. C) An optimizing individual is also likely to exhibit rationality. D) The less information that is available, the easier it is to make optimal decisions.
In the short run, a firm will produce a positive amount of output as long as
a. P > AVC at some output level b. P > MC at some output level c. P < AVC at some output level d. AVC < ATC at some output level e. FC > TR at some output level