If the wage rate increases and firms in a perfectly competitive industry are hir
ID: 1253645 • Letter: I
Question
If the wage rate increases and firms in a perfectly competitive industry are hiring labor than,a. the firms will quit using labor
b.market supply will decrease
c.market price will decrease
d.profits will increase
The average fixed cost curve
a. is the distance between the TC and TVC curves
b.increases as the cost of inputs rise
c.slopes downward as output increases
d.is parallel to the x-axis
The main source of diseconomies of scale is
a.dimensional factors associated with many physical relationships
b.limits to the efficient functioning of management
c.constant returns to scale
d.specialization of labor
A perfectly competitive industrys market price is found by
a. finding the point on the market demand curve where the largest number of units will be purchased
b. the horizontal summation of all the industry firms individual supply curves
c.locating the intersection of the market demand and market demand and market supply curves
d. identifying the price at which each firm realizes its largest economic profit
Explanation / Answer
B A B C