--%>

Equilibrium in purely competitive economy market

As the labor market within a purely competitive economy is into equilibrium: (1) the marginal benefits by unemployment exceed unemployment compensation. (2) the marginal benefits and marginal costs from employment are equal. (3) economic growth is inhibited through excessive automation. (4) inefficiency in the allocation of resources prevails. (5) marginal physical product of labor equals the money wage rate.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Managerial Economics

  • Q : Determine perfectly competitive firm

    When total variable cost exceeds total revenue whatever output levels but a perfectly competitive firm: w) must produce in the short run. x) is making short-run profits. y) must shut down in the short run. z) has shel

  • Q : Why is wealth definition of economics

    Why is wealth definition of economics criticized?

  • Q : Learning-by-doing Firms may make use of

    Firms may make use of low prices to enter a market and gain market share therefore is can learn the intricacies of a particular product line or business. It is an illustration of: (1) limit pricing. (2) accommodation. (3) learning-by-

  • Q : Define the term cost plus pricing

    Define the term cost plus pricing.

  • Q : Definition of Managerial economics

    Describes the definition of Managerial economics according to Douglas?

  • Q : Substitution Effect within Supply of

    When wage rates rise above $25 per hour in this figure given below, in that case the: (1) worker works more diligently to ensure that she keeps her job. (2) employer pays an excessively high efficiency wage. (3) income effect exceeds the substitution

  • Q : Derived Demand for Labor All else

    All else identical, a competitive firm will demand more labor when: (w) technological advances lead to automation. (x) the price of the firm’s output rises. (y) more firms enter the industry. (z) competing firms offer their workers more training

  • Q : Explain the pricing under price

    Explain the pricing under price leadership.

  • Q : Most exceed the wages or specific

    Firms tend to offer wages which most greatly exceed the wages which workers would earn elsewhere to workers who have: (1) profit-sharing plans. (2) specific training. (3) prenuptial agreements. (4) non-compete clauses in their work contracts. (5) general training.

  • Q : Illustrates the Scope of Managerial

    Illustrates the Scope of Managerial /Business Economics?