A monopsonist finds its profit maximizing quantity of labor employed at the point at which
A) marginal revenue product is zero.
B) marginal revenue product equals marginal factor cost.
C) marginal factor cost is zero.
D) total cost equals total revenue.
Answer: B
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In the figure above, in the market for low-skilled labor, the equilibrium wage rate is
A) $16. B) $8. C) $20. D) $28.
For the Cobb-Douglas utility function with two goods, the sum of the own price elasticities of demand must be:
a. 0. b. -1. c. -2. d. any number between 0 and -4.
Which of the following organizations works with developing countries to secure low-interest loans that foster economic growth?
A. Group of Five B. World Bank C. Group of Seven D. World Trade Organization
Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause
A) a reduction in the rate of growth in the long run. B) a reduction in output per worker. C) a reduction in consumption per worker. D) all of the above E) none of the above