Refer to the labor market diagram where D is the labor demand curve, S is the labor supply curve, and MRC is the marginal resource (labor) cost curve. If an inclusive union was able to get the monopsonist to pay a $6 wage rate, then:
A. the supply curve would be perfectly elastic for the first four workers, but the MRC curve
would be unaffected.
B. the supply curve would be perfectly elastic for all workers and the MRC curve would
coincide with it.
C. the supply curve would be perfectly elastic for the first four workers and the MRC would be
$6 for the first four workers.
D. eight workers would be hired.
C. the supply curve would be perfectly elastic for the first four workers and the MRC would be
$6 for the first four workers.
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A) there is neither a shortage nor a surplus. B) quantity supplied equals quantity demanded. C) the supply and demand curves intersect. D) all of the above are correct.
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A) horizontal or perfectly elastic. B) a downward sloping straight line. C) an upward sloping straight line. D) vertical or perfectly inelastic.
If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good
a. True b. False Indicate whether the statement is true or false