A monopsonist faces an upward-sloping labor supply curve. This means that his marginal expenditures on labor are
A) greater than the wage.
B) equal to the wage plus the increase in the wage resulting from hiring one more unit of labor hired.
C) greater than the wage because hiring more workers requires to pay all workers more.
D) All of the above.
D
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Which of the following would be considered an example of fiscal policy?
A. Provision of additional cash to the banking system. B. A reduction in income tax rates. C. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. D. Interest rate hikes generated by a reduction in the money supply.
How do property rights help organize production and trade?
What will be an ideal response?
The two basic reasons why a monopoly exists are barriers to entry and cost advantages
a. True b. False Indicate whether the statement is true or false
The relative-wage explanation for the existence of downwardly sticky wages emphasizes
A. employment contracts that stipulate workers' wages, usually for a period of one to three years. B. the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other firms and industries are receiving similar cuts. C. the incentive that firms may have to hold wages above the market clearing rate. D. unspoken agreements between workers and firms that firms will not cut wages.