A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has A. no control over the price of pretzels but some control over the wage it pays to its workers. B. some control over both the price of pretzels and the wage it pays to its workers. C. some control over the price of pretzels but no control over the wage it pays to its workers. D. no control over either the price of pretzels or the wage it pays to its workers.

A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has A. no control over the price of pretzels but some control over the wage it pays to its workers. B. some control over both the price of pretzels and the wage it pays to its workers. C. some control over the price of pretzels but no control over the wage it pays to its workers. D. no control over either the price of pretzels or the wage it pays to its workers.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 4DQ

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