Which of the following statements is correct regarding an individual firm which obtains its labour in a perfectly competitive labour market?

Select one:

a.It faces a horizontal labour demand curve and a upward-sloping labour supply curve.

b.It faces a downward-sloping labour demand curve and a horizontal labour supply curve.

c.It faces a downward-sloping labour demand curve and a upward-sloping labour supply curve.

d.It faces an upward-sloping labour demand curve and a downward-sloping labour supply curve.

A country has a comparative advantage over another only if it is able to produce all products more cheaply.

Select one:

True

False

Suppose that a consumer has a budget of $100 and the price of a CD is $20, while a movie costs $10. If movies are measured on the vertical axis, what is the slope of the budget line?

Select one:

a.-4

b.2

c.1/2

d.-1/2

e.4

What is the correct interpretation of the perfectly competitive firm's supply curve?

Select one:

a.It is the same as its average variable cost curve.

b.It is the same as its total variable cost curve.

c.It is the same as the portion of its average variable cost curve that lies above the marginal cost curve.

d.It is the same as the portion of its marginal cost curve that lies above the average variable cost curve.

What is true about the long-run equilibrium price of a monopolistically competitive firm?

Select one:

a.It will equal both average cost and marginal cost.

b.It will equal both marginal cost and marginal revenue.

c.It will exceed both average cost and marginal cost.

d.It will equal marginal cost and exceed average cost.

e.It will equal average cost and exceed marginal cost.