For a monopsony, the marginal cost of labor exceeds the wage rate because the firm must increase the wage it pays to all of its workers if it wishes to increase its employment
Indicate whether the statement is true or false
TRUE
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Refer to the table below. If Sweet Grams is a perfectly competitive firm and the market price $1.25 per unit, what is the profit-maximizing quantity for Sweet Grams to produce at Plant 1?
Sweet Grams makes graham cracker snack packages. Sweet Grams is a multi-plant firm with two production facilities. The above table summarizes the total marginal cost of production at various output levels in the separate plants. Assume Sweet Grams is a perfectly competitive firm.
A) 27,000
B) 30,100
C) 36,000
D) 24,500
If marginal cost exceeds marginal revenue, the firm
a. is most likely to be at a profit-maximizing level of output. b. should increase the level of production to maximize its profit. c. should reduce its average fixed cost in order to lower its marginal cost. d. may still be earning a positive accounting profit.
The short run:
A. means that output cannot be changed. B. means the price of output is fixed. C. means the firm cannot increase or decrease at least one of its inputs. D. All of these are true.
Which of the following situations is a clear application of the benefits principle of taxation?
A. Wealthier people are taxed more heavily. B. Heavier vehicles are charged higher tolls on turnpikes. C. State government providing a free education to any child in the state. D. Sales of measles vaccine exempt from sales tax.