The diagram below shows the labor market faced by monopsonists. To maximize profits, this firm will hire labor at point: 
A. L3.
B. L1.
C. L2.
D. 0.
Answer: B
You might also like to view...
Which of the following events triggered intense debate over the classical model of the economy?
a. The U.S. Civil War b. World War I c. the Baby Boom d. The Great Depression e. World War II
Which of the following statements is correct about the relationship between inflation and interest rates?
a. There is no relationship between inflation and interest rates. b. The interest rate is determined by the rate of inflation. c. In order to fully understand inflation, we need to know how to correct for the effects of interest rates. d. In order to fully understand interest rates, we need to know how to correct for the effects of inflation.
Which of the following is not demonstrated by a production possibility curve?
A. scarcity B. opportunity cost C. necessity for choice due to scarcity D. price
Using the UIP equation, equilibrium in the short run occurs when
a) arbitrage is possible b) the spot rate is such that foreign and domestic investment returns are equalized c) the spot rate and forward rate are equalized d) foreign interest rates and domestic interest rates are equalized