Suppose the labor market is competitive, the supply curve of labor is upward sloping, and the amount of capital is fixed. If the output market changes from a competitive market to a monopoly, what is the effect on its demand for labor? Explain
What will be an ideal response?
A monopoly will decrease output from the competitive level and thus hire fewer workers. This reduction in the demand curve for labor will result in lower wages.
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The optimum level of pollution emissions
A) is zero. B) occurs where the marginal external benefit is zero. C) occurs where no damage to the environment is being done. D) occurs where the marginal external benefit equals the marginal external cost. E) occurs where the marginal external cost equals the marginal cost of abatement.
If a hospital is experiencing economies of scale,
a. its average cost curve is positively sloped as output increases. b. its average cost curve is negatively sloped as output increases. c. it should reduce its output level to lower costs. d. quality is falling as output is rising. e. both b and c are true.
The labor supply curve facing a monopsonist is:
a. downward sloping. b. upward sloping. c. a horizontal line. d. backward bending. e. a vertical line.
One of the conclusions of A. C. Pigou was that
a. a system of mandatory controls is the only effective means to control pollution. b. a system of charges can be an effective means to control pollution. c. pollution will wither away if a socialist system is in place. d. pollution cannot be adequately addressed in a price system.