A monopsonist faces a constant elasticity of labor supply of 1.5. If the monopsonist pays $15 per hour, its marginal expenditure equals
A) $15.
B) $25.
C) $7.
D) 25%.
B
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When economists say consumers, firms, or investors are behaving rationally, they mean:
A) they recognize that it is not worthwhile to invest in risky stocks B) they are taking actions to reach their goals, given the available information C) they have significant investment expertise D) they are consistently able to avoid poor performing stocks
Corrective taxes cause deadweight losses, reducing economic efficiency
a. True b. False Indicate whether the statement is true or false
If the government regulates the price a monopoly can charge, and the price ceiling is set below what the competitive market price would be, then
A) a shortage will exist. B) a surplus will exist. C) producer surplus is maximized. D) consumer surplus is maximized.
By the study of "scarcity," an economist means how we best utilize our: a. limited resources in order to promote full employment and price stability. b. unlimited desires in order to best use our unlimited resources
c. unlimited resources to best satisfy our unlimited desires. d. limited resources in order to best satisfy our unlimited desires.