If the labor market is perfectly competitive the wage rate will ...

[leilurhhh]

If the labor market is perfectly competitive the wage rate will be less than the marginal revenue product of labor.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If a 10 percent increase in the price of gasoline results in a 2 percent decrease in the quantity demanded of gasoline, then the elasticity of demand for gasoline is:
 a. equal to 0.2 and demand is inelastic.
  b. equal to 0.2 and demand is elastic.
  c. equal to 0.02 and demand is elastic.
  d. equal to 0.5 and demand is inelastic.
  e. equal to 0.5 and the demand is elastic.

[aliotak]

Answer to Question 1

False

Answer to Question 2

a