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 will be the same rate it pays current workers.
C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers.
D) The monopsonist will have to raise the wage rate for current and additional employees.
D
You might also like to view...
Robert Lucas Jr. adapted the fooling model to his own way of thinking by replacing that model's assumption of
A) continuous market-clearing. B) imperfect information. C) the natural rate hypothesis. D) the gradual correction of expectational errors.
The yield percentage of a stock is calculated as
A) the corporation's net worth divided by the number of shareholders. B) the book value of the stock divided by the number of shareholders. C) the stock dividend divided by the price of the stock. D) the expected appreciation of the stock.
Which of the following is TRUE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are not given any discretion in their decision making c. Profit centers often largely run by themselves without a lot of executive oversight d. A manager being rewarded on division revenues has no incentive to make good decisions for his division
All inputs are increased by the same proportion and the output increases more than proportionately, this means that:
(a) Constant returns to scale are present. (b) Increasing returns to scale are present. (c) Decreasing Returns to Scale. (d) None of the above.