A monopsonistic employer in an unorganized (nonunion) labor market will:
A. pay a wage rate less than labor's MRP.
B. pay the same wage rate but hire fewer workers than if the market was purely competitive.
C. hire the number of workers indicated by the intersection of the MRC and the labor supply curves.
D. pay a wage rate in excess of labor's MRP.
Answer: A
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Some economists believe that the Asian crisis in 1997
A) could have been avoided if stronger action had been taken by major countries and international agencies. B) was inevitable since most of the economies were experiencing slow economic growth. C) was made worse by the refusal of the IMF to take any actions. D) was necessary to rid those economies of inflation.
The justification for government action based on the argument that everyone agrees to be coerced if everyone else is forced as well is not compatible with the criterion of Pareto superiority
a. True b. False
The demand curve for a monopolist is:
a. the demand curve for the industry. b. less than the market demand curve. c. below the marginal revenue curve. d. nonexistent. e. the sum of the demand curves of the perfectly competitive firms in the industry.
Which of the following represents the key difference between the short run and the long run?
A. In the long run, the firm makes commitments to a certain type of production technology which are represented as fixed costs in the long run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the short run. B. In the short run, the firm makes commitments to a certain type of production technology, which are represented as fixed costs in the short run. For example, they have signed a lease on a particular production facility. These fixed costs do not exist in the long run. C. The short run refers to less than two years and the long run is over two years. D. In the short run, all costs are fixed but in the long run, capital costs are variable.