A firm that is a monopolist in the output market and a monopsonist in the input market
A) will hire the same amount of labor as if perfect competition prevailed in both markets, but pay a lower wage.
B) will restrict the level of output but not that of employment compared to the perfectly competitive case.
C) will hire less labor but pay the same wage compared to the perfectly competitive case.
D) will hire less labor and pay a lower wage compared to the perfectly competitive case.
D
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Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the table below.Hours inEastOrchardNumber ofApples PerHourHours inWestOrchardNumber ofApples PerHour140110232210325310420410How should Frank divide his time between the east and the west orchard?
A. He should spend all 4 hours in the east orchard. B. He should spend 2 hours in east orchard and 2 hours in the west orchard. C. He should spend 3 hours in the east orchard and 1 hour in the west orchard. D. He should spend 1 hour in the east orchard and 3 hours in the west orchard.
An increase in the demand for music downloads indicates that more music downloads are
A. demanded because sellers are putting music downloads on sale. B. demanded because music download prices have decreased. C. demanded even if prices of music downloads stay the same. D. demanded because sellers are selling more music downloads.
In recent U.S. history
A) GDP has been much higher than GNP. B) GNP has been much higher than GDP. C) the difference between GNP and GDP has been very volatile. D) there has been little practical difference between GNP and GDP.
To minimize total costs for a particular rate of output, a firm will equate
A. the average cost of each factor. B. the marginal product per dollar spent on each factor. C. the marginal revenue product and variable marginal revenue for each factor. D. the marginal revenue of each factor.