-In the Figure Above,if the Minimum Wage Is $8 Per

question 138

Multiple Choice

-In the figure above,if the minimum wage is $8 per hour,then

• A) resources used in job-search activity increase compared to the situation before the minimum wage.
• B) it is legal to hire workers for a wage below the minimum wage because otherwise unemployment would result.
• C) the deadweight loss is minimized.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Pure Monopoly

A market structure in which one firm sells a unique product, into which entry is blocked, in which the single firm has considerable control over product price, and in which nonprice competition may or may not be found.

Entry Barriers

Obstacles that make it difficult for new competitors to enter an industry, including high startup costs, access to technology, and strict regulations.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing them to have a degree of market power.

Nonprice Competition

A marketing strategy where businesses focus on product differentiation, quality, or service rather than altering prices to compete with other firms.