When a monopsony hires an additional worker, it must pay the new worker's wages and it bids up the wages of all workers. This fact implies that the monopsony's
a. marginal labor cost is greater than the wage rate.
b. demand curve for labor is perfectly elastic at the going market wage.
c. marginal revenue product of labor is equal to the wage rate.
d. labor usage is greater than that of a firm that is competitive in the labor market.
a. marginal labor cost is greater than the wage rate.
You might also like to view...
Use the following graph to answer the next question.
Which of these lines represents the short- run aggregate supply curve?
A. 1 B. 2 C. 3 D. 4
The new Keynesians believe that the economy is not always in equilibrium because:
a. of the existence of voluntary unemployment. b. the Federal Reserve policy is too restrictive. c. government intervention destabilizes the economy. d. of the existence of wage and price rigidities. e. the rate of inflation is too high.
Which of the following statements is true of wages, educational attainment, and gender?
a. Male workers are compensated for attending college, while female workers generally are not. b. Female workers are compensated for attending college, while male workers generally are not. c. Both genders receive a higher wage for attending college. d. Neither gender receives a higher wage for attending college.
One reason nonunionized firms do not always drive unionized firms out of business is that:
A. unionized firms hire more selectively, employing workers with greater human capital. B. unionized firms reduce the value of total output. C. markets are not competitive. D. unionized firms receive government subsidies.