A monopsony maximizes its profit by hiring the level of employment that sets
A) labor supply equal to labor demand.
B) the value of marginal product equal to the wage.
C) the value of marginal product equal to the marginal cost of labor.
D) the value of marginal product equal to the demand for labor.
C
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What is an economic market?
What will be an ideal response?
What consumer surplus is received by someone whose willingness to pay is $35 below the market price of a good?
A. $35 B. $0 C. ($35 x P*) D. None of these is correct.
Which of the following would be considered a one-time expense?
A. Raw materials B. A delivery truck C. Radio ads D. A manager's salary
Abstraction is used in economics to omit unnecessary details and focus on the essence of the problem being studied.
Answer the following statement true (T) or false (F)