Which of the Following Is an Accurate Statement About the Relationship

question 93

Multiple Choice

Which of the following is an accurate statement about the relationship between firm effects and industry effects?

• A) Firm effects deal with the action of competitors; industry effects deal with internal circumstances.
• B) Firm effects deal with a manager's actions; industry effects deal with external circumstances.
• C) Firm effects deal with a manager's actions; industry effects deal with internal circumstances.
• D) Firm effects deal with the action of competitors; industry effects deal with external circumstances.

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Definitions:

Income Distribution

The way in which total income is shared among the population or different groups within the society.

Equilibrium Value

The price and quantity at which the supply and demand for a good or service balance each other out.

VMPL Curve

The VMPL curve, or the Value of Marginal Product of Labor curve, represents the additional value created by employing one more unit of labor, holding other inputs constant.

Market Wage Rate

The prevailing rate of pay for a specific job in the competitive labor market, determined by supply and demand for labor.