In Order to Study Labor Markets More Easily, We Make

question 521

Multiple Choice

In order to study labor markets more easily, we make which of the following assumptions about firms? (i)
Firms sell their products in competitive markets.
(ii)
Firms buy their inputs in competitive markets.
(iii)
Firms maximize profits.
(iv)
Firms maximize revenues.

• A)(iii) only
• B)(i) and (iii) only
• C)(i), (ii), and (iii) only
• D)(i), (ii), (iii), and (iv)

---

Definitions:

Regulatory Commissions

Government agencies responsible for enforcing specific regulations to protect public interest in various sectors.

Contain Costs

Strategies or measures implemented to prevent expenses from rising or to reduce them.

Natural Monopolies

Occur in industries where high infrastructure costs and other barriers to entry effectively prevent competition, with utility companies often cited as examples.

Legislation

Laws and legal provisions enacted by a government or legislative authority to regulate, authorize, forbid, or grant something.