Under monopsony, the marginal factor cost of a worker is equal to
A) the additional worker's wage rate only.
B) the additional worker's wage rate plus the increase in the wages of all other existing workers.
C) the increase in the wages of all other existing workers.
D) the difference between the worker's wage rate and the lower wage rate received by workers who have already been hired.
B
You might also like to view...
Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448Over which price range is the demand unit-elastic?
A. $16-$14 B. $14-$12 C. $12-$10 D. $18-$16
Milton Friedman and Edmund Phelps questioned
A) the use of expectations in the Phillips curve. B) the stability of the relationship between inflation and unemployment. C) the existence of a natural rate of unemployment. D) the existence of a full-employment level of output.
In a Malthusian world, why is misery recurrent?
A) The marginal returns of capital are decreasing. B) Fertility is endogenous. C) Output is increasing in labor. D) Mortality depends on the standard of living.
The price elasticity of demand can be computed as
A. change in total utility/change in quantity.
B.
| percentage change in quantity demanded/percentage change in price. |
C. change in price/change in quantity demanded.
D. change in quantity demanded/change in price.