The wage rate that a monopsonist would find most profitable is the wage
A. On the labor supply curve corresponding to the level of employment at which the marginal factor cost curve (for labor) intersects the labor demand curve.
B. On the labor demand curve at the wage where the marginal factor cost curve intersects the demand curve for labor.
C. At the intersection of the marginal wage curve and the marginal cost curve.
D. On the labor demand curve corresponding to the level of employment at which the marginal factor cost equals market supply.
Answer: A
You might also like to view...
What is the relationship between a firm's supply curve, its marginal cost curve, and its average variable cost curve?
What will be an ideal response?
If stock prices are expected to climb next year, everything else held constant, the ________ curve for bonds shifts ________ and the interest rate ________
A) demand; left; rises B) demand; right; rises C) demand; left; falls D) supply; left; rises
If everyone earned the same income, the Lorenz curve would be
A) a rectangular hyperbola. B) a straight line from the origin at a 45-degree angle. C) the horizontal axis. D) very bowed from the diagonal.
Which of the following would not be included in the calculation of accounting profit?
A. The rent paid by the owner for the use of a building. B. The medical insurance coverage for the company's workers. C. The salary the owner could have earned working elsewhere. D. The wages paid to the company's workers.