A firm faces the labor productivity and cost schedule in the table above. The wage rate schedule suggests that the firm:
A. Is purely competitive in the labor market
B. Is purely competitive in the product market
C. Has some monopoly power in the product market
D. Is not purely competitive in the labor market
D. Is not purely competitive in the labor market
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In monopolistically competitive markets, resources are:
A. overallocated because long-run equilibrium occurs where price exceeds marginal cost. B. underallocated because long-run equilibrium occurs where price exceeds marginal cost. C. overallocated because long-run equilibrium occurs where marginal cost exceeds price. D. underallocated because long-run equilibrium occurs where marginal cost exceeds price.