A monopsonist firm pays a price to a factor that is:
a. equal to the marginal revenue product of the factor.
b. greater than the marginal revenue product of the factor.
c. equal to the marginal factor cost.
d. greater than the marginal factor cost.
e. less than the marginal revenue product of the factor.
e
You might also like to view...
According to the substitution effect, if the price of a product goes down
A. the consumer will not change the level of purchases of the good when the price changes, making the demand curve a vertical line. B. the consumer will buy more of the good at the lower price than at a higher price, creating a downward sloping demand curve. C. the consumer will buy more of the good at a lower price than at a higher price, creating a horizontal demand curve. D. the real income of the consumer will increase, causing the consumer to want to buy more of the good, creating a downward sloping demand curve.
Explain and show graphically how an increase in government spending affects the equilibrium interest rate in the market for loanable funds
What will be an ideal response?
From an economist's perspective, why are public restrooms often dirtier than restrooms in your home?
A. Restrooms in your house are easier to clean. B. Property rights give you an incentive to clean your restrooms. C. There are incentives like a salary for janitors to clean the public restrooms. D. More people use the public restrooms.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real Domestic GDP b. GDP price index c. Real risk-free interest rate d. Quantity of currency per time period e. Open market operations