Multiple Choice QuestionInput prices tend to be sticky because:Multiple choice question.labor contracts allow for wage adjustments several times a year.product prices do not change very often.input price elasticity of demand is low.labor contracts might commit firms to paying a certain wage over multiple years.

Multiple Choice QuestionIn monopolistically competitive industriesMultiple choice question.price fixing is unlikely because there is a small number of firms.competition is unlikely because there is a large number of firms.restricting output is unlikely because there is a small number of firms.competition is unlikely because there is a small number of firms.collusion is unlikely because there is a large number of firms.

As a result of the diffusion of new technology, in the long run, we would normally expect: Select one correct answerGroup of answer choicesAn increase in unemployment (holding everything else constant).The price-setting curve to shift upwards (holding everything else constant).The price-setting curve to slope downward more steeply (holding everything else constant).The price-setting curve to shift downwards (holding everything else constant).

During a recession the demand for labor falls. The sticky wages theory suggestsMultiple choice question.employers will not adjust their demand for labor.employers will hire more workers.unemployment will be greater than if the wage rate adjusted downward.unemployment will be less than if the wage rate adjusted downward.

Multiple Choice QuestionWhen a firm in a competitive labor market is a wage taker, for each additional unit of labor hired, the total resource cost Blank______.Multiple choice question.decreases by exactly the amount of the constant market wage ratecan no longer be related to the market wage rateincreases by exactly the amount of the constant market wage ratestays constant at the market wage rate

Multiple Choice QuestionWhy is a purely competitive seller's resource demand curve more elastic than an imperfectly competitive seller operating in a monopoly, oligopoly, or monopolistic competition?Multiple choice question.Sellers operating in imperfect competition must keep prices the same, thus expanding labor by the same percentage as purely competitive sellers.Sellers in imperfect competition must raise prices to sell more, thus expanding labor by a higher percentage than purely competitive sellers.Sellers in imperfect competition must lower prices to sell more, thus expanding labor by a lower percentage than purely competitive sellers.