Suppose a monopsonist wants to hire more workers. If it has to pay the same wage to all of its workers, the:
A. marginal factor cost will fall while the wage will rise.
B. wage will fall while the marginal factor cost will rise.
C. difference between the wage and marginal factor cost will become smaller.
D. wage and the marginal factor cost will increase.
Answer: D
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Which of the following groups would most likely to benefit from inflation?
A. Borrowers B. Lenders C. Creditors D. Pensioners
The Coase theorem will hold only if:
A. people can make enforceable agreements. B. there are no transactions costs. C. Both of these must hold true. D. Neither of these must hold true.
If the slope of the budget line is steeper than the slope of the indifference curve, and X is on the horizontal axis:
A. the consumer is willing to give up more of good X to get an additional unit of good Y than is necessary under the current market prices. B. MRS = ?PX/PY. C. MRS > PX/PY. D. the consumer is willing to give up more of good Y to get an additional unit of good X than is necessary under the current market prices.
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The marginal benefit (in terms of extra donations) of the 2nd employee is:
A. $42,426. B. $12,426. C. $21,213. D. $11,337.