Author Question: At the December meeting of the American Economic Association, 2,500 new Ph.D.s look for college ... (Read 59 times)

dbose · **on:** Jun 30, 2018

At the December meeting of the American Economic Association, 2,500 new Ph.D.s look for college teaching jobs. If the average wage offer is 40,000 and Tedium University makes that offer, it is likely to
a. be ignored
b. attract only average Ph.D.s
c. attract applicants from top schools
d. attract Ph.D.s with strong dissertations
e. attract applicants of below-average quality

Question 2

Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output.
a. True
b. False