Given a competitive market equilibrium with normal supply and demand curves: Select one or more: O a. Firms are always price makers O b. firms are price takers O c. A rise in demand will lead to the possibility of an economic rent for some firms O d. prices are fixed
Given a competitive market equilibrium with normal supply and demand curves: Select one or more: O a. Firms are always price makers O b. firms are price takers O c. A rise in demand will lead to the possibility of an economic rent for some firms O d. prices are fixed
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please tell me the question in picture attached which of the multiple choice questions are correct.
![Given a competitive market equilibrium with normal supply and demand curves:
Select one or more:
O a. Firms are always price makers
O b. firms are price takers
O c. A rise in demand will lead to the possibility of an economic rent for some firms
O d. prices are fixed
Excess supply in a competitive market with no intervention
Select one or more:
O a. Will lead to a rise in price
O b. Will lead to rationing
O c. Will lead to diseconomies of scale
O d. Will lead to a fall in price
Given labour market equilibrium with identical workers, as set out in CORE
Select one or more:
O a. Unemployment is always voluntary
O b. Workers who are involuntarily unemployed cannot gain a job at any wage
O c. A Nash equilibrium exists
O d. Measured unemployment will be zero
In the same model of the labour market as in the previous question,
Select one or more:
O a. A rise in labour supply will lead to a rise in wages
O b. Given a constant mark-up a rise in labour productivity will lead to higher wages
O c. A rise in product market competition will lead to a higher mark-up
O d. Equilibrium employment is given by the intersection of the wage and profit curves
The value of an ordinary share
Select one or more:
a. Will fall if future profit forecasts are higher than expected
O b. Is always at its fundamental value
O c. Can rise and fall along with market sentiment
O d. Will rise if a firm introduces some cost saving innovation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F732fd883-bb26-41b1-a1fe-df2f55d8fe0f%2F97e75948-7c4f-4260-951d-0b0e6d42fe67%2Fe5kb04t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given a competitive market equilibrium with normal supply and demand curves:
Select one or more:
O a. Firms are always price makers
O b. firms are price takers
O c. A rise in demand will lead to the possibility of an economic rent for some firms
O d. prices are fixed
Excess supply in a competitive market with no intervention
Select one or more:
O a. Will lead to a rise in price
O b. Will lead to rationing
O c. Will lead to diseconomies of scale
O d. Will lead to a fall in price
Given labour market equilibrium with identical workers, as set out in CORE
Select one or more:
O a. Unemployment is always voluntary
O b. Workers who are involuntarily unemployed cannot gain a job at any wage
O c. A Nash equilibrium exists
O d. Measured unemployment will be zero
In the same model of the labour market as in the previous question,
Select one or more:
O a. A rise in labour supply will lead to a rise in wages
O b. Given a constant mark-up a rise in labour productivity will lead to higher wages
O c. A rise in product market competition will lead to a higher mark-up
O d. Equilibrium employment is given by the intersection of the wage and profit curves
The value of an ordinary share
Select one or more:
a. Will fall if future profit forecasts are higher than expected
O b. Is always at its fundamental value
O c. Can rise and fall along with market sentiment
O d. Will rise if a firm introduces some cost saving innovation
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