Suppose a monopsonist wants to hire more workers. If it has to pay the same wage rate to all of its workers
a. the marginal labor cost will fall while the wage rate will rise
b. the wage rate will fall while the marginal labor cost will rise
c. the difference between the wage rate and the marginal labor cost will decrease
d. the difference between the wage rate and the supply curve of labor will increase
e. both the wage rate and the marginal labor cost will increase
E
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Gordon's plots of the effectiveness lags of monetary policy over the periods 1961-1975, 1976-1990, and 1991-2007 show the effectiveness lags have become ________ and the overall response of GDP to monetary policy has ________
A) shorter, decreased B) shorter, increased C) longer, decreased D) longer, increased
Rational people having preferences for immediate benefits and delayed costs is another way of saying that:
A. money is worth less to us now than in the future. B. money is worth more to us now than in the future. C. the value of money does not change over time. D. rational people have insatiable wants.
Explain why marginal revenue is less than price for a monopolist
A tax imposed on the buyers of a good will raise the
a. price paid by buyers and lower the equilibrium quantity. b. price paid by buyers and raise the equilibrium quantity. c. effective price received by sellers and lower the equilibrium quantity. d. effective price received by sellers and raise the equilibrium quantity.