In a perfectly competitive market setting, which of thefollowing would be a true statement?

	Market price automatically sets itself exactly atequilibrium.
	Market price rarely trends toward the equilibrium value.
	Wage rates mirror marginal revenue product levels exactly.
	Wage rates trend toward marginal revenue product levels.

Question

A monopolistically competitive industry does notdisplay ineither the short-run, when firms aremaking ,nor in the long-run, when firms areearning .

	allocative efficiency; profits and losses; negativeprofits
	productive efficiency; profits and losses; zero profits
	productive and allocative efficiency; profits and losses; zeroprofits
	productive and allocative efficiency; profits and losses;negative profits

Answer rating: 100% (QA)

When there is perfect competition the wage rate at which supply and demand for labor are equal is ca... View the full answer