12 of 15 Which one of the following statements regarding the price-setting curve is true? O If labour is the only factor of production, firms will set prices as a markup over wages O An increase in product market competition will raise the markup O The price-setting equation models firms as setting prices as a mark-up over unit labour costs DIf the markup is constant, the price setting curve must be flat O The price setting curve is flat because of diminishing returns to labour O None of the above O All of the above

12 of 15 Which one of the following statements regarding the price-setting curve is true? O If labour is the only factor of production, firms will set prices as a markup over wages O An increase in product market competition will raise the markup O The price-setting equation models firms as setting prices as a mark-up over unit labour costs DIf the markup is constant, the price setting curve must be flat O The price setting curve is flat because of diminishing returns to labour O None of the above O All of the above

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 13P

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