Because the monopsonist takes into account the effect that employment expansion has on wages paid to existing workers, it will
A. employ less and pay less than the corresponding values under competition.
B. be exempt from minimum wage laws.
C. pay union workers more than nonunion workers.
D. employ more and pay more than the corresponding values under competition.
Answer: A
You might also like to view...
Verbally explain why a firm would maximize profits by producing output up to the point where MR = MC
List and describe two costs and two benefits of globalization as discussed in the textbook. Why does it tend to be more difficult to see the benefits of globalization as compared to the costs of globalization?
Keynes argued that the downward slope of the demand for money curve depends on the:
A. equation of exchange. B. rate of interest. C. federal funds rate. D. discount rate.
Which of the following would be most likely to prompt businesses to make planned inventory investment?
a. reports of rising imports b. an announced reduction in interest rates c. soaring production levels d. reports of rising unemployment