Exam 9: Price Takers and the Competitive Process

The share of the labor force that was unionized increased from 7.4 percent in 1930 to more than 30 percent in 1955. During these 25 years, the share of national income allocated to labor (in contrast to capital)

Most studies indicate that during the last two decades, the wages of union members have been approximately

Use the figure to answer the following question(s). Figure 9-6 -If the market price in Figure 9-6 increases to $20, what should the firm do?

If a competitive price-taker firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

When entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because

Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?

When a firm is operating in a price-taker market, marginal revenue will always equal

If a decrease in the demand for corn leads to economic losses for corn farmers,

The main difference between a firm that is a price searcher and a firm that is a price taker is that a

In a price-taker market, profits are

The graph below depicts the cost structure for a firm in a competitive market. Figure 9-13 -Refer to Figure 9-13. When price rises from P₃ to P₄, the firm finds that

If resource prices rise and the average total cost of producing a product increases as the firms in an industry expand output in response to an increase in demand, the long-run market supply curve for the product will

Use the figure to answer the following question(s). Figure 9-5 -If the market price in Figure 9-5 increases to $4, what output should the firm produce, and what would be the firm's maximum profit?

Since 1970, union membership, as a percent of the labor force, has

Firms that are price takers

If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase

In a competitive price-taker market,

Use the figure to answer the following question(s). Figure 9-6 -When the market price in Figure 9-6 is $20, the firm's maximum profit will be approximately

Which of the following is a characteristic of a competitive price-taker market?

In a price-taker market, economic losses indicate that