Workers usually negotiate compensation in terms of the nominal wage because wage agreements are based on expected price levels

You should specialize in the production of a good if you have

A) an absolute advantage. B) more capital resources than your trading partner. C) more human resources than your trading partner. D) a comparative advantage.

Both a perfectly competitive firm and a monopolist:

a. maximize profit by setting marginal cost equal to marginal revenue. b. always earn an economic profit. c. are price takers. d. maximize profit by setting marginal cost equal to average total cost.