Suppose a monopsonist hires its second worker and this hiring has a marginal factor cost of $75 per day. If the market wage is now $62.50 per day, what was the first employee earning when she worked alone?
A. $40.
B. $45.
C. $50.
D. $55.
Answer: C
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Economists use the term shocks to mean
A) unexpected government actions that affect the economy. B) typically unpredictable forces that have major impacts on the economy. C) sudden rises in oil prices. D) the business cycle.
Steve takes $500 from his paycheck and uses it to purchase U.S. Savings Bonds. Based on this information:
A. Steve's wealth is unchanged. B. Steve's saving has increased by $500. C. Steve's saving has decreased by $500. D. Steve has a capital gain of $500.
Which of the following geographic regions is expected to experience the largest percentage increase in its population between 2003 and 2050?
(a) Asia and Oceania. (b) Latin America. (c) North America. (d) Africa.
The Basel Capital Accord does NOT include
A) requiring bank owners to invest into and have some capital ownership in the banks they own. B) supervision of banks by an oversight board. C) information disclosure designed to encourage market discipline. D) denying access to foreign capital by a country that defaults on its international loans. E) None of the above.