Which of the following is TRUE concerning equilibrium in a monopsonistic factor market?
A) The firm uses the efficient level of the input but does not maximize profit.
B) The firm maximizes profit but does not use the efficient level of the input.
C) The firm maximizes profit and uses the efficient level of the input.
D) The firm either maximizes profit or uses the efficient level of the input, but it cannot do both at the same time.
B
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The working population of the United States is approximately
a. 144 million b. 290 million c. 300 million d. 1.3 billion
In an imaginary economy, consumers buy only sandwiches and magazines. The fixed basket consists of 20 sandwiches and 30 magazines. In 2006, a sandwich cost $4 and a magazine cost $2 . In 2007, a sandwich cost $5 . The base year is 2006 . If the inflation rate in 2007 was 16 percent, then how much did a magazine cost in 2007?
a. $1.87 b. $2.08 c. $2.32 d. $3.00
Which of the following does not help explain the direction the quantity of aggregate goods demanded changes when the price level decreases?
a. consumer wealth rises b. borrowing rises c. each dollar is worth more domestic goods d. the dollar appreciates relative to other currencies
Which of the following refers to the positive or negative effect on parties who are not directly involved in a transaction?
A. Consumption effect B. Externality C. Incentive distortions D. Invisible hand