A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A. The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work.
B. The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers.
C. The monopsonist will have to raise the wage rate for current and additional employees.
D. The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers.
Answer: C
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Consider an economy where the growth rate of money supply is 2% and the inflation rate is 2%. If the quantity theory of money holds, the growth rate of real GDP in the economy will be:
A) 2%. B) 4%. C) 1%. D) 0%.
Mary buys cell-phone services from a company that charges $30 per month. For that $30 she is allowed 600 minutes of free calls and then pays 25 cents per minute for any calls above 600 minutes. Mary has used 300 minutes this month so far. What is her marginal cost per minute of making two more calls lasting 10 minutes each?
A. $0 B. $2.50 C. 25 cents D. 4 cents
An example of a transfer payment is
A) a teacher's paycheck. B) a paycheck for a member of the National Guard. C) a welfare payment. D) a purchase of a new bridge in Alaska.
Before the period of modern economic growth:
A. only civilizations such as the Roman Empire experienced economic growth. B. rates of population growth virtually matched rates of output growth. C. most economies realized high rates of growth in output per person. D. output and population growth were stagnant.