A monopsonistic employer:
A. has a perfectly elastic labor supply curve.
B. is necessarily a monopolist in the product market.
C. confronts a marginal resource (labor) cost that is greater than the wage rate.
D. confronts a marginal resource (labor) cost that is less than the wage rate.
Answer: C
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An important difference between a perfectly competitive firm and a monopolist is that
a. the perfectly competitive firm tends to be larger b. only the monopolist attempts to maximize profit c. only the perfectly competitive firm maximizes profit d. the perfectly competitive firm faces a horizontal demand curve and the monopolist faces a downward-sloping demand curve e. only the monopolist maximizes profit at the quantity where marginal cost equals marginal revenue
A rapid demographic transition should raise the saving rate
a. True b. False
If the United States can produce computers efficiently, then what is the most likely reason it imports computers from other countries?
a. Producing computers would take resources from the production of other goods in which the United States has a comparative advantage. b. Computers manufactured in other countries are of higher quality and are more durable than computers made in the United States. c. International law requires computer manufacturing to take place in the country of origin of the computer firms. d. Other countries have an absolute advantage over the United States when it comes to computer manufacturing.
Figure 4.4 illustrates the supply of tacos. An increase in the number of Mexican food producers would most likely cause a movement from:
A. point a to point c. B. point c to point a. C. S2 to S0. D. S0 to S2.