A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is
A) ten cents.
B) $10.00.
C) $10.10.
D) $15.10.
Answer: D
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When a monopolist maximizes its profit by selling a positive amount:
A. its marginal revenue must equal its marginal cost at that quantity. B. its marginal revenue must exceed its marginal cost at that quantity. C. its marginal revenue must be less than its marginal cost at that quantity. D. its marginal revenue must be equal to zero.
Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam's consumer surplus is:
a. $10 b. $40. c. $70 d. $100.
Outsourcing allows a company to take advantage of the ________ of other countries, and in doing so it can produce its products at a lower cost.
A. comparative advantages B. diminishing returns C. trade imbalances D. market failures