If the wage rate increases:
A. a purely competitive producer will hire less labor, but an imperfectly competitive producer
will not.
B. an imperfectly competitive producer will hire less labor, but a purely competitive producer
will not.
C. a purely competitive producer and an imperfectly competitive producer will both hire less
labor.
D. an imperfectly competitive producer may find it profitable to hire either more or less labor.
Answer: C
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The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A) government balance sheet constraint. B) government budget constraint. C) tax collection constraint D) user charge constraint.
When positive externalities are present, it leads to an underallocation of resources in that area relative to that which is socially desirable
a. True b. False Indicate whether the statement is true or false