Monopsonists hire the amount of labor that will equate the marginal factor cost with the derived demand curve for labor.
Answer the following statement true (T) or false (F)
True
The intersection of the marginal factor cost and labor demand curve (marginal revenue product) indicates the quantity of labor a monopsonist will want to hire.
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Explain the three reasons the aggregate demand curve slopes downward
What will be an ideal response?
If the supply of a good is relatively inelastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. none of the above.
Since World War II, state and local government revenues have been a
a. growing share of total government revenues. b. shrinking share of total government revenues. c. stable share of total government revenues. d. minuscule share of total government revenues.
For perfectly competitive firms, marginal revenue ________ price; for monopolists marginal revenue ________ price.
A. equals; is less than B. equals; equals C. equals; is greater than D. is less than; equals