Exam 9: Price Takers and the Competitive Process

Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur?

A firm in a price-taker market

The demand for union labor is usually determined by

There are 1,000 identical firms in a price-taker industry. In the short run, the total revenues of each firm are less than total costs. What will happen in the long run?

If a firm is losing money, this implies that

In the long run, in a price-taker market, the price of a good is determined primarily by the

Which of the following statements is true concerning the impact of unions on wages of all workers?

Use the figure to answer the following question(s). Figure 9-3 -For Figure 9-3, if the market price is $30, indicate the firm's profit-maximizing output and maximum profit.

In the short run, a profit-maximizing price taker will expand output as long as the market price exceeds

The share of the labor force that was unionized fell from more than 30 percent in the 1950s to less than 15 percent in the 2000s. During this time period, the share of national income allocated to labor (in contrast to capital)

Regarding the impact of unions on wages of all workers, which of the following statements is correct?

As the football season approaches, the threat of a player strike would give

What common goals, if any, do labor and management share?

Use the figure to answer the following question(s). Figure 9-5 -If the market price in Figure 9-5 fell to $2.50, what should the firm do?

Which of the following would be an expected result of substantially higher wages in the U.S. automobile industry?

When a law is passed that requires businesses to obtain permission from government officials in order to enter a market, this is an example of

Suppose a restaurant that is highly profitable during the summer months is unable to cover its total cost during the winter months. If it wants to maximize profits, the restaurant should

Which of the following groups is most highly unionized?

Figure 9-16 -If the price-taker firm in Figure 9-16 is currently producing 6 units, then to maximize profit in the short run, it should

When price is greater than marginal cost for a firm in a competitive market,