A monopsonist facing many suppliers of labor will employ:
A. fewer workers than a firm operating in a perfectly competitive labor market.
B. an indeterminate number of workers.
C. more workers than a firm operating in a perfectly competitive labor market.
D. the same number of workers as a firm operating in a perfectly competitive labor market.
Answer: A
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In a free market there are significant restrictions on how a good or service can be produced or sold
Indicate whether the statement is true or false
Monetary and fiscal policy making that is carried out in response to a pre-set rule and does not respond to changes in economic activity is known as
A) active policy making. B) discretionary policy making. C) nondiscretionary policy making. D) Keynesian policy making.
Perfect central planning is nearly impossible for all of these reasons except: a. production processes between industries are often interdependent
b. some processes must be decided together, and not individually, because of their interdependence. c. if the output target for one industry is adjusted, many others must also be adjusted. d. all of these reasons are correct.
If the marginal productivity of labor was the sole determinant of household income in the U.S., then
a. no households would be poor according to the official government definition of poverty. b. no households would be poor according to a relative definition of poverty. c. the distribution of income would be unequal. d. every household would have sufficient income to meet biological needs.