If a firm is a monopsonistic hirer of labor:
a. its marginal expense for labor is greater than the market wage.
b. its marginal expense for labor is equal to the market wage.
c. its marginal expense for labor is less than the market wage.
d. it is a price taker in the labor market.
a
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The price elasticity of demand is defined as the magnitude of the
A) change in quantity demanded divided by the change in price. B) change in price divided by the change in quantity demanded. C) percentage change in quantity demanded divided by the percentage change in price. D) percentage change in price divided by the percentage change in quantity demanded.
Risk premiums on corporate bonds tend to ________ during business cycle expansions and ________ during recessions, everything else held constant
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
If the social costs of driving an automobile are greater than the private costs of driving an automobile, then
A) the external costs of auto driving exceed the social costs of auto driving. B) the external costs of auto driving exceed the internal costs. C) the price of automobile driving is too high. D) either people drive their autos too much or more funds should be spent on reducing air pollution.
All of the following can create an oligopolistic structure EXCEPT
A. government licensing rules. B. economies of scale. C. low barriers to entry. D. mergers.