The figure supports all of the following statements regarding the marginal factor cost curve for a monopsonist EXCEPT
A) the monopsonist firm looks at a marginal cost curve, MFC, which slopes upward and is above its labor supply curve.
B) the marginal benefit of hiring additional workers is given by the firm's MRP curve.
C) the intersection of MFC with MRP, at point E, determines the number of workers hired.
D) a monopsonist cannot find the profit-maximizing quantity of labor demanded at E.
D
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If a used-car dealer suffers economic losses, then
A) as a group, its customers were necessarily made worse off. B) as a group, its competitors necessarily enjoyed economic profits. C) it must pass its losses onto its future customers. D) none of the above is true.
Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient outcome would be greater than 325 units. b. The efficient outcome would be less than 325 units. c. The efficient outcome would also be 325 units. d. The efficient price would be less than $24.
Refer to the above table. You are given information on Celine's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals
A. 0.4035. B. 247.826. C. 0.2478. D. 40.35.
If the cross price elasticity of two goods is -3.5, then
A) these two products are relatively elastic substitutes. B) these two products are relatively inelastic substitutes. C) these two products are relatively elastic complements. D) these two products are relatively inelastic complements.