Author Question: A firm produces staples in a perfectly competitive market and hires workers in a perfectly ... (Read 149 times)

Mollykgkg · **on:** Jun 30, 2018

A firm produces staples in a perfectly competitive market and hires workers in a perfectly competitive labor market. Which of the following is true?
a. The supply curve of staples is horizontal.
b. The supply curve of workers is horizontal.
c. The firm's demand curve for labor is horizontal.
d. The marginal revenue product of labor curve is horizontal.
e. The marginal product of labor curve is horizontal.

Question 2

If a private market determines the quantity of smallpox vaccinations, which of the following is true?
a. The equilibrium quantity is too low for efficiency.
b. The equilibrium price and quantity are too high for efficiency.
c. The equilibrium price is efficient.
d. The equilibrium quantity is too high for efficiency.
e. The equilibrium price and quantity are efficient.