Refer to the diagrams. The firm:
A. has a principal-agent problem.
B. has a constant marginal resource cost of $5.
C. has a marginal resource cost that exceeds the wage rate for each worker.
D. will fail to maximize profits if it hires 5 workers.
B. has a constant marginal resource cost of $5.
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In drawing a budget line it is assumed that:
A) consumer preferences are fixed. B) the prices of the two products are variable. C) money income is fixed. D) consumer willingness to substitute between the two products is fixed.
Which of the following statements is TRUE?
A) A perfectly competitive market produces more output and charges a lower price than a single-price monopoly. B) A perfectly competitive market produces more output and charges the same price as a single-price monopoly. C) A perfectly competitive market produces less output and charges a lower price than a single-price monopoly. D) A perfectly competitive market produces less output and charges the same price as a single-price monopoly.