For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:

When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because

A) market systems are unnatural and require careful design. B) people who have lived under socialism lack the basic skills a market system requires. C) people who have long lived under socialism are not sufficiently individualistic. D) the experience of socialism makes people distrustful of one another. E) they lack many of the institutions that develop over time in a market system.

If the government owns a nationalized firm, the prices are

a. set by an administrative agency of the government b. set by the free market c. high enough to make economic profits for the government d. determined by competition e. set to encourage efficiency and reduce waste