Why does a monopsonist's marginal expenditure curve lie above the labor supply curve?
What will be an ideal response?
To hire additional labor, the monopsonist must increase the wage paid to all units of labor. Thus, the marginal expenditure of the next unit of labor is the higher wage plus the wage increase paid to all previously hired labor.
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Define marginal benefit. Explain how it is measured and why the data in the table does not enable you to calculate Brazil's marginal benefit from food
What will be an ideal response?
Which of the following is true for a monopoly?
A) P = MC B) P = MR C) P > MR D) P < MR
Along a given demand curve, a decrease in supply will typically
a. decrease price, but the change in quantity could be in either direction b. increase price and decrease the quantity c. decrease price but leave quantity unchanged d. decrease both quantity and price e. increase both quantity and price
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $90 and is a monopolistically competitive firm. If the firm is attempting to maximize profits, its profit is
A. -$90. B. -$175. C. $0. D. -$100.