ECON 101 FINAL PT 2
What is the dominant factor determining market price in the long run (assuming the industry has unrestricted entry)
Average costs
If a company engages in perfect price discrimination, it is attempting to...
Charge each customer their reservation price
Market power determines the shape of a firm's...
Demand curve
In a perfectly competitive labor market, the manager's hiring decision is about...
How many workers to hire
What happens in the labor market for biologists when wages in other, similar occupations fall?
There is a rightward shift of the supply curve
The Rational Rule for Sellers is that sellers should choose the quantity _________ and choose the price ___________.
Where marginal revenue equals marginal cost; that is on the seller's demand curve for that quantity
Free entry into a market tends to cause ______ to disappear.
desirable opportunities
An efficiency wage is a....
higher wage paid to encourage greater worker productivity
An ______ gives you information that helps you make the right choice, while a ________ changes the decision environment in a way that increases the chances that you will make the right choice.
incentive; nudge
Marginal revenue product is the...
marginal revenue from hiring an additional worker
A seller's demand curve summarizes its _____, and its marginal revenue curve measures its _______.
market power; incentive to increase production
Your landscaping company uses labor and shovels. The price of shovels falls, and this ______ your demand for labor because labor and shovels are ______.
raises; complements
Does the government increasing its provision of childcare services shift the labor of supply or demand curve?
supply curve
Average cost equals...
total cost divided by output
When companies exercise market power, ______ occurs. _____ can partially solve this problem.
underproduction; price discrimination
When segmenting your market demand into groups, base them on _____ and _____ characteristics.
verifiable; difficult to change
Employers use educational background and degrees obtained to indicate an applicants...
Productivity and certain traits
The degree of a seller's market power has an impact on the...
Seller's demand curve
When the government requires that a person have a license to work in a particular occupation, then in the labor market for that occupation...
Supply decreases
