Because of market power, wages are higher under monopsony than under competitive conditions
Indicate whether the statement is true or false
False. Because of market power, the monopsonist pays a lower wage than is paid in a competitive market.
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A bank in Checkland lends a sum of $100 billion to a business firm in Zoroland. Checkland makes a donation of $5 million to a charity in Zoroland. A retail giant in Zoroland opens a new facility in Checkland that is worth $100 billion
Total foreign direct investments in Checkland equal: A) $100 billion. B) $205 billion. C) $200 billion. D) $105 billion.
Consider a downward-sloping demand curve. When the price of a normal good decreases, the income and substitution effects
A) work in the same direction to increase quantity demanded. B) work in the same direction to decrease quantity demanded. C) work in opposite directions and quantity demanded increases. D) work in opposite directions and quantity demanded decreases.
In a past fare war, U.S. Air reduced the price of its Charlotte, North Carolina, to New York City round-trip fare from $198 to $138 to match American Airlines. U.S. Air did so reluctantly, saying it would cost the company millions of dollars in revenue
American, on the other hand, believed the fare cut would increase its revenue. What different assumptions about the underlying price elasticity of demand did each airline believe true?
If the cost of apparel increases by 50 percent, then, other things the same, the CPI is likely to increase by about
a. 0.5 percent. b. 1.5 percent. c. 3.0 percent. d. 11.8 percent.