Marginal factor cost (MFC) is the same as the wage rate for a monopsonist
a. True
b. False
Indicate whether the statement is true or false
False
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Railroads
(a) were among the last of the pre-1890 big businesses to be regulated. (b) were only subject to regulation by governments when the federal government stepped in with the Interstate Commerce Act of 1887. (c) were objects of regulation more than a decade before the Interstate Commerce Commission Act. (d) were never subject to government regulation before World War I and the "command economy."
Which of the following industries most closely approximates the oligopoly model?
a. dry cleaning b. fast food c. automobile manufacturing d. agricultural produce
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What is the spending multiplier of this economy?
a. 2 b. 1.4 c. 0.7 d. 0.9 e. Cannot be determined with the given information
If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be
A. 2 units of outboard motors.
B. 4 units of outboard motors.
C. 12 units of outboard motors.
D. 11 units of robots.