In Figure 31.2, what is the difference between the marginal revenue product of the last worker hired by the monopsonist and the wages the monopsonist pays the last worker?
A. $5 per hour.
B. $3 per hour.
C. $4 per hour.
D. $2 per hour.
Answer: B
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Which of the following accounts for the highest percentage of health care dollar spending in the United States?
a. prescription drugs b. physician services c. program administration and net cost d. hospital care
Jim has the following assets and liabilities:Credit card balance$1,000Cash$500Government bonds$3,000Checking$750Car loan balance$10,000Car$15,000 What is Jim's money demand?
A. $750 B. $3,250 C. $1,250 D. $500
When consumers in a market become fully informed of negative information about the product, we can expect the
A. price of the product to decrease. B. price of the product to increase. C. price of the product to remain constant but the equilibrium quantity to decrease. D. equilibrium quantity of the product to increase.
Suppose that there is only one small clothing store in the remote village of Green Acres, and until recently the townspeople bought their shirts there. As more people in Green Acres become connected to the Internet, the price elasticity of demand for shirts at the Green Acres store will:
A. increase because the Internet offers more substitutes. B. remain the same, but the quantity demanded will decrease as more people shop online. C. decrease because the Internet offers more substitutes. D. remain the same, but the demand will decrease as more people shop online.