Which of the following statements is true about monopsony?
a. c and e.
b. c, d, and e.
c. Monopsonists exercise complete buying power.
d. Monopsonists maximize profit by setting MRP = MFC.
e. Monopsonists face the whole labor supply curve.
b
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The deadweight loss of taxation on a good is higher if ________
A) the demand or the supply of the good is relatively price elastic B) a progressive tax system is practiced C) a low rate of tax is imposed on the sale of the good D) there is only one seller in the market
A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
A merchandiser decides to sell corn to a Blair, NE location and gain $0.17/bu on the trade (after transport). He/she can obtain the corn for this opportunity at a net cost of $0.10/bu. The merchandiser who made these transactions, is taking advantage of an opportunity for _________:
a. Storage opportunities b. Monopoly gains c. Monopsony gains d. Arbitrage
When oligopolistic companies engage in collusion, the companies are involved in a
A) noncooperative game. B) negative-sum game. C) competitive game. D) cooperative game.