The labor supply curve facing an individual employer in a perfectly competitive labor market is:

If a monopoly's Lerner Index exceeds 1, then

A) it is earning maximum profit. B) it has ultimate market power. C) it must be pricing below marginal cost. D) marginal revenue is negative.

The saying "the lower the price, the better" may not always be correct for an economy's public interest because

a. people should have to pay for what they want. b. people will overuse something they perceive as being cheaper than the utility they receive for it. c. the government can no longer afford to provide all the goods and services it provides because it is slowly going broke. d. cheaper prices will make people buy less of other things.