A perfectly elastic curve implies that the firm: nust lower the price in order t
ID: 1130786 • Letter: A
Question
A perfectly elastic curve implies that the firm: nust lower the price in order to sell more output b. is selling a differentiate product an sell as much output as it wants at the existing price d. has a vertical demand curve. The market demand curve is........ While single seller's demand curve is..... Respectively pure competition: lownsloping, horizontal up sloping, downsloping b. vertical, downsloping horizontal, downsloping If the labor market has only one big employer and the labor is represented by a union, then it is: bilateral monopoly b. mono psony c. monopoly d. social monopoly In the constant cost industry, the long run supply curve in pure competition is: horizontal b. vertical c. downsloping d. up sloping ize all industry workers resulting in: inclusive unions b. craft unions c. exclusive unions d. none of these Encouraging compulsory retirement, enforcing shorter workweek and raising the working age is used by industrial unions b. inclusive unions c. craft unions d.occupational licensing. Steel unions and forest product workers have lobbied for tarfs and quotas on foreign stcel and lumber ports which is an example of this model craft unionism b. inclusive unionism c. demand enhancement model d. all of these. The profit maximizing output is the quantity where marginal revenue equals marginal cost in: pure & monopolistic competition b. oligopoly c.monopoly d. all of these.Explanation / Answer
A perfect elastic curve indiactes that at a same price, a firm can increase its selling of output because of elastic Demand. With change is market supply the price will remain at equilibrium with a increase in quantity sold
Since in a perfect competition,the demand curve is horizontal, as P=MR=AR, an individual cannot influence the market price by raising or lowering its output, so the firm faces a downsloping demand curve
Monopsony is a labour market, where only one main employer of labours exists and many labours seeking employment , and they are represented by union.
In a constant cost industry, with an increasing demand, supply is also increased. Here, supply increased accordingly the increase in demand. Equilibrium price stays the same as quantity sold increases.
Instead of trying to limit their membership, however, most unions seek to organize all available workers resulting in industrial unions. This unions seek as members unskilled, semiskilled, and skilled workers in an industry.
Craft unionism directly restricts the supply of labor by supporting legislation that restricts immigration, encourages compulsory retirement, and enforces a shorter workweek.
Craft unionism, inclusive unionism, demand enhancement model, all of these are techniques of union to raise wages , which is represented by the above example. Union attempts to increase the demand for labour to raise their wages by these techniques.
in perfect competition, and monopolistic competition P=MC=MR. In a competitive market as well as monopolistic market, there are many buyers and sellers. So the determination of the price by industry is subjected to the Aggregate demand and supply. So, firms here maximises the profit at a certain level of output where at the market price, Marginal Rvenue equals to marginal cost.
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