Demand for Labour

The demand for labour in this industry has declined from Q2 to Q1. This could be because: (one correct answer)

• The price of capital has declined.

• The demand for the product that labour produced has declined.

• The wage rate increased.

• Labour productivity has increased.

Which one of these factors can shift a demand curve?

• Changes in VAT

• Subsidies

• Speculation

• Changes in productivity

This revenue curve is (two correct answers)

• from a firm operating in the conditions of perfect competition.

• from a firm operating in the conditions of monopoly.

• from a firm with no price making power.

• from a firm with price making power.

A shift from D1 to D2 could happen because (two correct answers)

• the price of capital has increased.

• the price of capital has fallen.

• demand for product labour produces has increased.

• demand for product labour produces has fallen.

• the global economy has entered a recession.

This revenue curve is (two correct answers)

• from a firm operating in the conditions of perfect competition.

• from a firm operating in the conditions of monopoly.

• from a firm with no price making power.

• from a firm with price making power.

Firms in the food industry buy flour to produce cakes. This is an example of

• elastic demand

• inelastic demand

• derived demand

• composite demand

Asda sells crips at the following prices:

One pack of Smoky Bacon Walkers Crisps = £0.40

A 6-pack of Smoky Bacon Walkers Crisps = £1.15

What is this an example of?

• First degree price discrimination

• Second degree price discrimination

• Third degree price discrimination

As a long-term strategy what can incumbents in a contestable market do to avoid hit-and-run competition? (multiple correct answers)

• Setting prices at P = AC.

• Setting prices at P > AC.

• Setting prices at P < AC.

• Set a limit price.

• Set prices where MC = MR.

Samsung Electronics, a company that operates in many industries, took over Harman: a company that makes products for automakers.

• This is an example of forward vertical integration.

• This is an example of backward vertical integration.

• This is an example of horizontal integration.

• This is an example of conglomerate integration.

In this market prices must not fall below P2. What is occurring here?

• A minimum price set by the government.

• A maximum price set by the government.

• Excess demand.

• Excess supply.