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confronted with the same unit cost data, a monopolistic producer will charge
b. a higher price and produce a smaller output than a competitive firm
monopolistically competitive industries
a. produce excess capacity
in a monopolistically competitive market
a. the concentration ratio tends to be low
in monopolistic competition, a firm's demand curve is tangent to the long run average cost curve because
b. entry eliminates economic profit, and exit eliminates losses
in the long run firms in monopolistic competition produce at
b. a point to the left of teh lowest point on their average total cost curve
if a refulatory commission forces a natural monopoly to charge a price equal to its marginal cost
d. all of the above:

the monopoly may incur a loss, resource allocation will be improved,  output will increase
the percentage of total sales of an industry made by the four (or some other number) largest sellers in an industry is called
c. Concentration Ratio
the only market structure in which there is significant interdependence among firms with regard to their pricing and output decisions is
c. oligopoly
a similarity of an oligopoly and a monopoly is
c. the existence of market power
the kinked demand curve reflects the idea that
c. prices may remain rigid even in the face of cost increases
in an oligopoly
a. the concentration ration tends to be high
if an oligopolist is going to change its price or output, its initial concern is
a. the response of its competitors
oligopolists have a mutual interest in coordinating production decisions in order to maximize combined
b. profits
the most common form of non price competition
b. advertising
when firms collude in an oligopoly, the result is often a case of
b. price fixing
if teh sellers of labor in a competitive market were suddenly able to unionize, ceteris paribus
a. wages would rise and employment would fall
a monopsony
a. is a market in which there is a single buyer
the derived demand for labor is downward sloping because of
c. diminishing returns to labor
if the MPP of an additional unit of labor is 3 units per hour, product price is constant at $4 per unit, and the wage rate is $15 per hour. then
b. an additional unit of labor should not be employed
As labor productivity increases, which of the following shifts in the labor market should result
d. demand for labor should shift to the right
for a minimum wage to have any impact on a labor market, it must be set at a level
a. higher than the equilibrium wage
a profit maximizing monopsonist will hire workers at the point where the marginal resource cost curve intersects the
d. marginal revenue product curve
when the supply of a factor is perfectly inelastic
a. the quantity of the factor does not increase in response to rising prices
the marginal revenue product
d. all of the above:

establishes a limit to a factor's price
is the derived demand for input
is the cahnge in total revenue divided by the change in the quantity of input
for an upward sloping supply curve, the quantity of labor supplied varies directly, ceteris paribus, with
a. the wage rate
the elasticity of resource demand measures
d. the percentage change in resource quantity to a percentage change in resource price
the demand for a resource depends primarily on
b. the demand for the product or service that it helps produce
the labor demand curve of a purely competitive seller
b. slopes downward because of diminishing marginal productivity
a firm will find it profitable to hire workers up to the point at which their
d. marginal resource cost is equal to their MRP
If two resources are highly substitutable for one another
b. an increase in the price of one will increase the demand for the other
the elasticity of labor demand will be greater the
c. larger the number of good stubstitute resource is equal to its price
assuming acompetitive resource market, a firm is hiring several resources in the profit maximizing amounts when the
b. marginal revenue product of each resource is equal to its price
if the nominal wage increases by less than the rate of inflation, the real wage
b. will decrease
a firm operating in a purely competitive resource market will have a resource supply curve that is
b. perfectly elastic
a monopsonist
b. reduces the number of workers it employs so that it can pay each worker a lower wage rate
other things equal, the monopsonistic employer will pay a
a. lower wage rate and hire fewer workers than will a purely competitive employer
a monopsonistic employer's marginal resource (labor) cost curve
d. lies above the labor supply curve because the higher wage paid to an additional worker must also be paid to all other employed workers
if an exclusive union is successful in restricting the supply of labor
a. the wage rate will rise
bilateral monopoly occurs where
a. a monopsonistic employer bargains with an inclusive union
compensating differences in wages
a. compensate workers for differences in their human capital

b. are wage differences that compensate for differences in desirability of jobs
economists regard expenditures on education as investments because
c. such expenditures are current costs that are intended to enhance future earnings
collective bargaining
a. involves direct negotiations between labor unions and employers
which of the following may characterize oligopolistic behavior
d. all of the above:

price leadership
open an explicit agreements concerning price and output shares transform an oligopoly into a
b. cartel
which of the following tactics is most associated with teh demand enhancement union model
b. lobbying for increases in public expenditures on the product it is producing
the monopolist's demand curve
a. is the industry demand curve
marginal resource cost is
a. the increase in total resource cost associated with the hire of one more unit of the resource
b. the increasein total resource cost associated with the hire of one more unit of the resource
a monopolist always sets price in teh
b. elastic segment of its demand curve
economic profit in the long run is
b. possible for a pure monopoly, but not for a pure competitor
an important economic problem associated with monopoly is that , at the profit maximizing outputs, resources are
c. underallocated because price exceeds marginal cost
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