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
collusion
retaliation

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