A monopsony will:
A. hire more workers than a competitive employer.
B. pay a higher wage than a competitive employer.
C. employ a quantity of labor where the marginal revenue product equals the marginal factor cost.
D. have a marginal factor cost curve equal to the labor supply curve.
Answer: C
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Refer to Figure 13-2. Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
The Federal Reserve has been ________ preemptive because of the changing view that monetary policy has to be ________ looking
A) more; forward B) more; backward C) less; forward D) less; backward
Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete(s) the sentence?
a. Only II. b. All except III. c. I and II, but not III and IV. d. I and IV, but not II and III
According to Angus Madison, a leading authority in the area, world per capita GDP
a. increased by about 50 percent during the 800 years following year 1000 . but it increased by nearly tenfold during the past 200 years. b. increased by nearly tenfold during the 800 years between 1000 and 1813, but it increased by only 50 percent during the past 200 years. c. has grown steadily during the past 1000 years. d. Grew at an annual rate of more than 2 percent during 1000-1813, but the annual growth rate has declined as the population increased during the past 200 years.