A pure monopsony exists in a labor market when
A. a labor union dominates the labor market.
B. a single buyer buys all of a given type of labor that has few other employment opportunities.
C. only a few firms purchase the services of labor in the market.
D. many competing firms purchase the services of labor in the market.
B. a single buyer buys all of a given type of labor that has few other employment opportunities.
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Rational production decisions require an understanding of
A. trade-offs. B. opportunity costs. C. scarcity of resources. D. All of the responses are correct.
The story of innovation battles among firms is analogous to the story of armaments races among countries
a. True b. False Indicate whether the statement is true or false
Which of the following people are liquidity providers?
A. Antiques dealer B. Bank teller C. Used car salesman D. All of these are considered liquidity providers.
Figure 9.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that all of the used refrigerators in the market are lemons (low quality), what number of used refrigerators sold will actually be lemons (low quality)?
A. 50 B. 125 C. 175 D. 250