Imagine yourself to be a monopsonist producing strawberries in a small Florida farming community.
a. You do not have to deal with the marginal revenue product of labor.
b. You can control the price of the good.
c. The wage rate is given to you and you can hire as many workers as you wish at that rate
d. You face an upward-sloping supply curve of labor and can choose any wage rate and labor combination shown on that curve.
e. For your firm, labor is preferred to capital as a factor of production.
D
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As the ________ increases, ________
A) quantity demanded of a good; its price increases B) quantity demanded of a good; its price decreases C) price of a good; its quantity demanded increases D) price of a good; its quantity demanded decreases
A sole proprietorship is the type of business that has ________ government rules and regulations affecting it
A) only federal B) the fewest C) the most D) no
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $5, the marginal factor cost for labor is
A) greater than $5. B) less than $5. C) $5. D) indeterminate.
A major disadvantage of the corporate form of business is limited liability
a. True b. False