Author Question: Because of a decrease in the wage rate it must pay, a perfectly competitive firm's marginal costs ... (Read 111 times)

123654777 · **on:** Jun 29, 2018

Because of a decrease in the wage rate it must pay, a perfectly competitive firm's marginal costs decrease but its demand curve stays the same. As a result, the firm

A) decreases the amount of output it produces and raises its price.
B) increases the amount of output it produces and lowers it price.
C) increases the amount of output it produces and does not change its price.
D) decreases the amount of output it produces and lowers its price.

Question 2

Which of these is NOT a potential source of inefficiency?

A) external benefits
B) increasing marginal costs
C) monopoly
D) subsidies