Which of the following is true of both monopolistically competitive and perfectly competitive firms in long-run equilibrium?

In the short run, which of the following must be true for a perfectly competitive firm that is maximizing profits?

The profit-maximizing output level produced by an unregulated monopoly is 

A firm’s demand for labor is known as a derived demand because

Pickleco, a pickle-producing firm, hires labor and capital in perfectly competitive factor markets. The firm is minimizing its costs at the current production level. The marginal product of labor is 100 units and the marginal product of capital is 60 units. If the rental price of capital is $12, what is the wage Pickleco is paying its workers?

A firm with market power engages in price discrimination to

The figure presents a graph. The horizontal axis is labeled Quantity. The vertical axis is labeled Price, Cost, M R, and A T C. There is a straight line labeled D that begins near the top of the vertical axis and moves down and to the right, ending on the far right side of the horizontal axis. There are two curves labeled M C and A T C. The curve A T C begins just to the right and about half way up the vertical axis. It moves down and to the right, and reaches a minimum point to the left of the D line. It then begins to move up and to the right, crossing the D line. It ends on the right side on the graph at about the same height as which it began. The curve M C begins on the vertical axis, just above the origin and well below the A T C curve, and moves up and to the right, crossing the A T C curve at the minimum point of the A T C curve. It then continues up, crossing the D line, and ends in the upper right hand portion of the graph. Various quantities are identified on the horizontal axis. There is a vertical dashed line that goes from the intersection of the A T C and M C curves to the horizontal axis, and identifies the quantity Q sub 2 on the horizontal axis. The quantity Q sub 1 is identified just to the left of Q sub 2 on the horizontal axis. There is a straight line, labeled M R, that begins at the same point on the vertical axis as the D line, and moves down and to the right, ending at Q sub 1 on the horizontal axis. There is a second vertical dashed line that goes from the intersection of the M R and M C curves to the horizontal axis, and identifies the quantity Q sub 0 on the horizontal axis, which is just to the left of Q sub 1. There is a third vertical dashed line that goes from the intersection of the M C and D curves down to the horizontal axis, and identifies the quantity Q sub 3, which is just to the right of Q sub 2. There is a fourth vertical dashed line that goes from the intersection of the A T C and D curves down to the horizontal axis, and identifies the quantity Q sub 4, which is just to the right of Q sub 3 Based on the information in the graph above, what are the profit-maximizing output quantities for a single-price monopolist and for a monopolist that engages in perfect price discrimination?

If a firm engages in perfect price discrimination, it charges

Which of the following tends to increase the gap in earnings between skilled and unskilled workers over time?

The figure shoes a graph for a monopsonistic labor market with a horizontal axis labeled Number of Workers and a vertical axis labeled Wage. Two quantities appear on the horizontal axis and are labeled, from left to right, L sub one and L sub 2. Four prices appear on the vertical axis and are labeled, from bottom to top, W sub one, W sub 2, W sub 3, and W sub 4. There are two upward sloping lines and one downward sloping line on the graph. The leftmost upward sloping line is labeled Marginal Factor Cost, and begins to the right of the vertical axis and below a wage of W sub one, moves up and to the right, intersects the downward sloping line at L sub one and W sub 3, continues on, passing through the coordinates for L sub 2 and W sub 4. The rightmost upward sloping line is labeled Supply, and begins slightly below the start of the Marginal Factor Cost line, moves up and to the right, increasing in distance from the Marginal Factor Cost line as it moves up, and intersects the downward sloping line at L sub 2 and W sub 2, continues on, and ends to the right of and below the Marginal Factor Cost line. The downward sloping line is labeled Marginal Revenue Product, and begins to the right of the vertical axis and above wage W sub 4, moves down and to the right, intersects the marginal Factor Cost line at L sub one and W sub 3, then intersects the Supply line at L sub 2 and W sub 2, and continues on. The upward and downward sloping lines do not cross the horizontal or vertical axis. In the monopsonistic labor market shown in the diagram above, which of the following indicates the number of workers the firm will hire and the wage rate it will pay?