Which of the following conditions must hold under perfect competition in factor markets? I. A firm is a wage taker. II. The marginal revenue product curve slopes downward. III. Factor demand equals factor supply for the individual firm. Choose the correct option:

Consider the following statements about factor market equilibrium when the product market is monopolistic: A. VMPL > MRPL because MR < P for a monopolist. B. In equilibrium, the monopolist equates MRPL = w (wage), not VMPL = w. C. The wedge between VMPL and w is called 'monopsonistic exploitation'. D. The wedge between VMPL and MRPL is called 'monopolistic exploitation' of labour. E. Under bilateral monopoly, the wage is indeterminate within a range bounded by the monopsonist's offer and the union's demand. Which statements are CORRECT?

According to the modern theory of rent and factor pricing, which of the following statements are CORRECT? A. Any factor of production (not just land) can earn economic rent if its supply is inelastic. B. Transfer earnings (opportunity cost) represent the minimum reward needed to keep a factor in its present use. C. Economic rent = actual earnings − transfer earnings. D. In the long run, for a competitive firm with free entry, economic rent for all factors is completely eliminated. E. The entire earnings of a factor with zero opportunity cost (e.g., an asset with no alternative use) consist entirely of economic rent. Choose the correct answer: