If a monopsonist increases its output by adding both capital and labor to production, which of the following will decline?
a. wage rate
b. unemployment
c. marginal cost of labor
d. marginal physical product
e. marginal revenue product
B
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Which of the following is part of the market structure for monopolistic competition?
A) barriers to entry B) a large number of firms compete C) each firm produces a differentiated product D) Both answers B and C are correct.
For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor. B. these assets allow an investor to eliminate the risk that they face entirely. C. they provide high returns with a very small investment. D. they are easier to sell than common stock.
Which expression is used to calculate the future value of an amount of money?
A. Present Value x (1 + interest rate)time B. Present Value/(1 + interest rate)time C. Present Value x (1 + time)interest rate D. (1 + interest rate)time/Present Value
The figure above shows the market for college education. The efficient quantity of education is
A) 0 students. B) 4 million students. C) 6 million students. D) more than 6 million students. E) more than 4 million students and less than 6 million students.